Property Ownership

What is 'tenancy by the entirety' and does Hawaii recognize it?

AA. A form of ownership by three or more unrelated parties; recognized in Hawaii

BB. A form of co-ownership available only to legally married spouses, with right of survivorship and protection from individual creditors; Hawaii law may recognize this in limited circumstances✓ Correct

CC. Hawaii specifically prohibits tenancy by the entirety

DD. A form of ownership with a right of first refusal for business partners

Explanation

Tenancy by the entirety is a special form of joint ownership available to legally married spouses (and in some states, civil union partners). It includes right of survivorship and, importantly, protection from the separate creditors of either individual spouse.

People Also Study

Key Terms to Know

Right of First Refusal

A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.

Fee Simple

The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.