The English Roots of Our Real Estate Law
Ever wonder why real estate is called “real estate?” Like much of our law here in the United States, real estate law has its roots in English common law. North Carolina explicitly declared that English common law would remain in force provided it was not contrary to independence or otherwise repealed. One significant aspect of English common law retained in North Carolina, and most other states, is the doctrine of estates, whereby the different types of estate ownership were classified. Real estate law has evolved to meet the needs of our modern society, but its origin will always be in English common law. Occasionally those old cases are even referenced in more recent caselaw.
Practically, when it comes to owning real property in North Carolina, there are several ways to hold title. By far the most common forms are Tenants in Common, Joint Tenancy with Right of Survivorship, and Tenancy by the Entirety. Each has its own legal implications, and understanding the differences can help you make the right choice for your property needs.
1. Tenants in Common (TIC)
This is the presumptive form of ownership when there’s more than one owner. Each person holds an individualized ownership interest, meaning they can transfer their share of the property independently. Upon the death of an owner, their share of the property passes according to their will or through intestacy laws if no will exists. This arrangement is ideal for co-owners who wish to retain control over their respective interests.
2. Joint Tenancy with Right of Survivorship (JTWROS)
With JTWROS, multiple owners hold property together, but with a key feature—if one owner passes away, their share automatically transfers to the surviving owner(s). However, if one owner chooses to sell or transfer their interest, it severs the right of survivorship. This type of ownership is often used as a simple estate planning tool, allowing property to pass outside of probate without the need for a will.
3. Tenancy by the Entirety (TBE)
This form of ownership is similar to JTWROS but is reserved exclusively for married couples. In addition to the right of survivorship, it provides added protection against creditors, making it a valuable choice for spouses looking to safeguard their property. Like JTWROS, it’s presumed that married couples in North Carolina will hold property this way unless specified otherwise on the deed.
Choosing the right form of ownership can have significant financial and legal consequences. If you’re considering purchasing property or making changes to your title, it’s a good idea to consult with a real estate attorney to ensure your interests are protected.
Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.
The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.