Corporations cannot hold title to real property in New Jersey with another as a joint tenant because

Corporations cannot hold title to real property in New Jersey with another as a joint tenant because

• A. Perpetual Existence
• B. Corporate Tax Status
• C. Limited Liability
• D. Public Policy

Answer: (A)

Joint tenancy hinges on four unities—time, title, interest, and possession—and the right of survivorship. For a joint tenancy to work, all co-owners must acquire their interests at the same time and, if one owner dies, that owner’s interest immediately passes to the surviving co-owners. A corporation, however, has perpetual existence; it does not die. Because survivorship depends on the death of a co-tenant to terminate that person’s interest and transfer it to the survivors, a true joint tenancy cannot be formed between a corporation and another person. In New Jersey, that perpetual life of a corporate co-tenant breaks the required unity and survivorship, so the property would typically be held as tenancy in common instead. The other factors listed—tax status, limited liability, or public policy—do not address this survivorship/unity issue.

Joint tenancy hinges on four unities—time, title, interest, and possession—and the right of survivorship. For a joint tenancy to work, all co-owners must acquire their interests at the same time and, if one owner dies, that owner’s interest immediately passes to the surviving co-owners. A corporation, however, has perpetual existence; it does not die. Because survivorship depends on the death of a co-tenant to terminate that person’s interest and transfer it to the survivors, a true joint tenancy cannot be formed between a corporation and another person. In New Jersey, that perpetual life of a corporate co-tenant breaks the required unity and survivorship, so the property would typically be held as tenancy in common instead. The other factors listed—tax status, limited liability, or public policy—do not address this survivorship/unity issue.