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7 LONG TITLE
8 General Description:
9 This bill clarifies a provision related to a joint tenancy interest presumption.
10 Highlighted Provisions:
11 This bill:
12 ▸ clarifies that a joint tenancy interest presumption exists between two persons
13 designated as spouses in the granting documents.
14 Money Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 None
18 Utah Code Sections Affected:
19 AMENDS:
20 57-1-5, as last amended by Laws of Utah 2011, Chapter 88
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22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 57-1-5 is amended to read:
24 57-1-5. Creation of joint tenancy presumed -- Tenancy in common -- Severance of
25 joint tenancy -- Tenants by the entirety -- Tenants holding as community property.
26 (1) (a) (i) (A) Beginning on May 5, 1997 and ending on May 3, 2022, [
27 ownership interest in real estate granted to two persons in their own right who are designated as
28 husband and wife in the granting documents is presumed to be a joint tenancy interest with
29 rights of survivorship, unless severed, converted, or expressly declared in the grant to be
30 otherwise.
31 (B) Beginning on May 4, 2022, an ownership interest in real estate granted to two
32 persons in their own right who are designated as spouses in the granting documents is
33 presumed to be a joint tenancy interest with rights of survivorship, unless severed, converted,
34 or expressly declared in the grant to be otherwise.
35 (ii) Except as provided in Subsection (1)(a)(iii), joint tenancy may be established
36 between two or more people.
37 (iii) Joint tenancy may not be established between a person and an entity or
38 organization, including:
39 (A) a corporation;
40 (B) a trustee of a trust; or
41 (C) a partnership.
42 (iv) Joint tenancy may not be established between an entity or organization and another
43 entity or organization.
44 (b) [
45 tenancy presumption as provided in Subsection (1)(a) is presumed to be a tenancy in common
46 interest unless expressly declared in the grant to be otherwise.
47 (2) (a) Use of words "joint tenancy" or "with rights of survivorship" or "and to the
48 survivor of them" or words of similar import means a joint tenancy.
49 (b) (i) Use of words "tenancy in common" or "with no rights of survivorship" or
50 "undivided interest" or words of similar import declare a tenancy in common.
51 (ii) Use of words "and/or" in the context of an ownership interest declare a tenancy in
52 common unless accompanied by joint tenancy language described in Subsection (2)(a), which
53 creates a joint tenancy.
54 (3) A person who owns real property creates a joint tenancy in himself or herself and
55 another or others:
56 (a) by making a transfer to himself or herself and another or others as joint tenants by
57 use of the words as provided in Subsection (2)(a); or
58 (b) by conveying to another person or persons an interest in land in which an interest is
59 retained by the grantor and by declaring the creation of a joint tenancy by use of the words as
60 provided in Subsection (2)(a).
61 (4) In all cases, the interest of joint tenants shall be equal and undivided.
62 (5) (a) Except as provided in Subsection (5)(b), if a joint tenant makes a bona fide
63 conveyance of the joint tenant's interest in property held in joint tenancy to himself or herself or
64 another, the joint tenancy is severed and converted into a tenancy in common.
65 (b) If there is more than one joint tenant remaining after a joint tenant severs a joint
66 tenancy under Subsection (5)(a), the remaining joint tenants continue to hold their interest in
67 joint tenancy.
68 (6) The amendments to this section in Laws of Utah 1997, Chapter 124, have no
69 retrospective operation and shall govern instruments executed and recorded on or after May 5,
70 1997.
71 (7) Tenants by the entirety are considered to be joint tenants.
72 (8) Tenants holding title as community property are considered to be joint tenants.