Key Takeaways
- New Jersey recognizes tenancy in common, joint tenancy, and tenancy by the entirety
- Joint tenancy requires the four unities and must expressly state survivorship rights
- Tenancy by the entirety is available only to married couples with creditor protection
- New Jersey is an equitable distribution state for divorce, not community property
- Homestead exemption does not exist in New Jersey for property tax purposes
New Jersey Property Rights and Ownership
Important: This content covers New Jersey-specific property law. You should complete the National Real Estate Exam Prep first, as general property concepts are tested on the national portion.
New Jersey follows common law principles for property ownership with some state-specific provisions.
Types of Property Ownership
Individual Ownership (Tenancy in Severalty)
One person holds title:
- Full control over property
- No survivorship rights
- Passes through probate
Co-Ownership Types
| Type | Key Features |
|---|---|
| Tenancy in Common | Default, unequal shares OK, no survivorship |
| Joint Tenancy | Four unities required, survivorship |
| Tenancy by the Entirety | Married couples only, creditor protection |
Tenancy in Common
| Feature | Description |
|---|---|
| Default | Assumed without survivorship language |
| Shares | Can be unequal |
| Transfer | Each owner can sell their share |
| Death | Share passes through estate |
Joint Tenancy
Requirements (Four Unities):
- Time - Acquired at same time
- Title - Same deed/instrument
- Interest - Equal shares
- Possession - Equal right to possess
Must expressly state "with right of survivorship" or similar language.
Tenancy by the Entirety
| Feature | Detail |
|---|---|
| Who | Married couples only |
| Survivorship | Automatic |
| Creditor protection | Individual debts cannot attach |
| Severance | Requires divorce or mutual agreement |
Key Point: In NJ, tenancy by the entirety provides significant creditor protection. Individual creditors cannot force sale of property held this way.
Marital Property Rights
Equitable Distribution State
New Jersey is an equitable distribution state:
| Feature | New Jersey Rule |
|---|---|
| Division method | Equitable (fair, not necessarily equal) |
| Court discretion | Based on multiple factors |
| Separate property | Generally remains separate |
| Marital property | Subject to division |
Factors in Equitable Distribution
Courts consider:
- Duration of marriage
- Age and health of parties
- Income and earning capacity
- Contribution to marital property
- Standard of living during marriage
- Economic circumstances at divorce
No Homestead Exemption
Unlike many states, New Jersey does NOT have a homestead exemption for property taxes:
| State | Homestead Exemption? |
|---|---|
| Many states | Yes - reduces taxable value |
| New Jersey | No - no reduction |
However, New Jersey does have other property tax relief programs:
- Senior Freeze Program
- Veterans deductions
- Disability exemptions
Easements
Types of Easements
| Type | Description |
|---|---|
| Appurtenant | Benefits adjoining land |
| In Gross | Benefits person/entity |
| Prescriptive | Created by adverse use |
| By Necessity | For landlocked parcels |
Prescriptive Easement in NJ
To establish a prescriptive easement:
| Requirement | Detail |
|---|---|
| Duration | 20 years in NJ |
| Use | Open and notorious |
| Adverse | Without permission |
| Continuous | Uninterrupted |
Adverse Possession
New Jersey requires 30 years for adverse possession claims when claiming against the State, but shorter periods may apply in other circumstances.
Does New Jersey have a homestead exemption for property taxes?
What type of co-ownership provides creditor protection in New Jersey?
Is New Jersey a community property state?