Word!LAWYER2 wrote:Nice!The Egyptian wrote: -In joint tenancy, if one tenant defaults on a loan, and the creditor gets a judgment lien, the lien won't just be effective if recorded. It has to be executed during the life time of the debtor joint tenant. If the debtor, dies before that, the alive joint tenant(s) prevail against creditor.
Another sweet fact i learned about JT's today:
A mortgage on a Joint Tenancy does NOT sever the joint tenancy in a Lien Theory (majority) state. However it will sever the JT in title theory states.
Hmmm . . . I wonder if we should site the source for independent verification.
Question # 17 - Real Property
A mother who died testate devised her farm to her son and her daughter as “joint tenants with right of survivorship.” The
language of the will was sufficient to create a common law joint tenancy with right of survivorship, which is unmodified
by statute in the jurisdiction. After the mother’s death and with the daughter’s permission, the son took sole possession of
the farm and agreed to pay the daughter a stipulated monthly rent.
Several years later, the son defaulted on a personal loan, and his creditor obtained a judgment against him for $30,000. The
creditor promptly and properly filed the judgment.
A statute of the jurisdiction provides: “Any judgment properly filed shall, for 10 years from filing, be a lien on the real
property then owned or subsequently acquired by any person against whom the judgment is rendered.”
Six months later, the son died.
There are no other applicable statutes.
Is the creditor entitled to enforce its judgment lien against the farm?
(A) No, because the daughter became sole owner of the farm free and clear of the creditor’s judgment lien when the son
died.
Correct. The recording of a judgment against a joint tenant with right of survivorship allows the judgment
creditor to obtain a writ of execution but does not effect a severance of the joint tenancy. The son’s creditor
failed to execute on the judgment against the son before his death, and the daughter, as the survivor, became the
sole owner of the farm.
(B) No, because the son’s interest was severed from the daughter’s interest upon the filing of the lien.
(C) Yes, because a joint tenancy cannot be created by devise, and the son died owning a 50% undivided interest in the
farm as a tenant in common.
(D) Yes, because the son died owning a 50% undivided interest in the farm as a joint tenant with the daughter.