Humber/Ontario Real Estate Course 3 Exam Practice

Which statement is correct about the property interest of buyers Reed and Boothe?

1. Reed and Boothe are joint tenants by acquisition timing

2. Title transfers to Boothe automatically upon Reed's death

3. Joint tenancy isn't created if buyers' interests differ

4. Reed and Boothe will create a joint tenancy due to same acquisition time

5. Reed's interest reverts to Boothe regardless of a will

6. Boothe's interest is subordinate to Reed's interest

The correct answer is: Joint tenancy isn't created if buyers' interests differ

The statement that Reed and Boothe will create a joint tenancy if their interests are identical is based on the fundamental principles of joint tenancy. Joint tenancy requires that all parties have equal ownership interests in the property as well as the same rights to possession. This means that Reed and Boothe must acquire equal shares of the property at the same time under the same title to establish a true joint tenancy. If their interests were to differ in any capacity—such as one having more ownership percentage than the other or different rights attached to the ownership—then a joint tenancy would not be recognized. Instead, their relationship might default to a tenancy in common, which does not provide the right of survivorship that joint tenancy does. Understanding this principle clarifies that to form a joint tenancy, it is essential that the interests are equal and simultaneous. Thus, the correct option accurately reflects the requirements needed for Reed and Boothe to establish a joint tenancy.