Chief Sponsor: Mike K. McKell

Senate Sponsor: J. Stuart Adams


8     General Description:
9          This bill modifies real estate provisions to address joint tenancies.
10     Highlighted Provisions:
11          This bill:
12          ▸     addresses when a joint tenancy is presumed;
13          ▸     clarifies that a joint tenancy may not be established between a person and limited
14     liability company; and
15          ▸     makes technical amendments.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          57-1-5, as last amended by Laws of Utah 2011, Chapter 88

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 57-1-5 is amended to read:
26          57-1-5. Creation of joint tenancy presumed -- Tenancy in common -- Severance of
27     joint tenancy -- Tenants by the entirety -- Tenants holding as community property.

28          (1) (a) (i) [Beginning on May 5, 1997, every] Every ownership interest in real estate
29     granted to two persons in their own right who are designated as husband and wife, wife and
30     husband, married, or a married couple in the granting documents is presumed to be a joint
31     tenancy interest with rights of survivorship, unless severed, converted, or expressly declared in
32     the grant to be otherwise.
33          (ii) Except as provided in Subsection (1)(a)(iii), joint tenancy may be established
34     between two or more people.
35          (iii) Joint tenancy may not be established between a person and an entity or
36     organization, including:
37          (A) a corporation;
38          (B) a trustee of a trust; [or]
39          (C) a partnership[.]; or
40          (D) a limited liability company.
41          (iv) Joint tenancy may not be established between an entity or organization and another
42     entity or organization.
43          (b) Every ownership interest in real estate that does not qualify for the joint tenancy
44     presumption as provided in Subsection (1)(a) is presumed to be a tenancy in common interest
45     unless expressly declared in the grant to be otherwise.
46          (2) (a) Use of words "joint tenancy" or "with rights of survivorship" or "and to the
47     survivor of them" or words of similar import means a joint tenancy.
48          (b) (i) Use of words "tenancy in common" or "with no rights of survivorship" or
49     "undivided interest" or words of similar import declare a tenancy in common.
50          (ii) Use of words "and/or" in the context of an ownership interest declare a tenancy in
51     common unless accompanied by joint tenancy language described in Subsection (2)(a), which
52     creates a joint tenancy.
53          (3) A person who owns real property creates a joint tenancy in himself or herself and
54     another or others:
55          (a) by making a transfer to himself or herself and another or others as joint tenants by
56     use of the words as provided in Subsection (2)(a); or
57          (b) by conveying to another person or persons an interest in land in which an interest is
58     retained by the grantor and by declaring the creation of a joint tenancy by use of the words as

59     provided in Subsection (2)(a).
60          (4) In all cases, the interest of joint tenants shall be equal and undivided.
61          (5) (a) Except as provided in Subsection (5)(b), if a joint tenant makes a bona fide
62     conveyance of the joint tenant's interest in property held in joint tenancy to himself or herself or
63     another, the joint tenancy is severed and converted into a tenancy in common.
64          (b) If there is more than one joint tenant remaining after a joint tenant severs a joint
65     tenancy under Subsection (5)(a), the remaining joint tenants continue to hold their interest in
66     joint tenancy.
67          (6) The amendments to this section in Laws of Utah 1997, Chapter 124, have no
68     retrospective operation and shall govern instruments executed and recorded on or after May 5,
69     1997.
70          (7) Tenants by the entirety are considered to be joint tenants.
71          (8) Tenants holding title as community property are considered to be joint tenants.

Legislative Review Note
     as of 2-26-15 10:39 AM

Office of Legislative Research and General Counsel