How is ownership transferred among joint tenants upon death?

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Prepare for the California MLO License Test with interactive quizzes, flashcards, and detailed explanations. Enhance your knowledge and boost your confidence for exam success!

Ownership among joint tenants is transferred automatically to the surviving joint tenants upon the death of one tenant due to the right of survivorship inherent in joint tenancy. This means that when one joint tenant passes away, their interest in the property does not become part of their estate, nor is it subject to probate. Instead, the remaining joint tenants continue to own the property as before, and their shares effectively increase to absorb the deceased tenant's interest.

This feature of joint tenancy is a key reason why many individuals choose this form of ownership when they wish for property to pass seamlessly to surviving owners without the complications of probate, which can be lengthy and costly. The automatic nature of this transfer is a distinctive characteristic of joint tenancy, differing from other forms of property ownership such as tenancy in common, where a deceased tenant's share may go to their heirs or be handled through the estate process.

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