Michigan Deed Ownership Types at a Glance
A deed determines more than whose name appears on the property. It can also determine what share each person owns, whether an owner can transfer an interest, and what happens when an owner dies.
When Michigan real estate is transferred to two or more people, the deed’s exact wording matters. A transfer generally creates a tenancy in common unless the deed expressly creates another form of ownership. Different rules apply to some transfers made to spouses.
Valid survivorship language may allow property to pass directly to a surviving owner. Without effective survivorship language, a deceased owner’s share may pass through a trust, probate, a will, or Michigan intestacy law.
Each owner has a separate share of the property. The shares may be equal, such as 50% each, or they may be different.
When one owner dies, that owner’s share does not automatically pass to the other owner.
Some deeds allow the surviving owner to receive the property automatically. Other deeds give each owner a separate share that may pass to that owner’s heirs or beneficiaries.
The result depends on the actual language in the deed.
Property covered by an effective right of survivorship may pass directly to the surviving owner without becoming part of the first owner’s probate estate.
The deed and later title history must be reviewed before deciding whether probate is needed.
Michigan Deed Ownership Types Explained
Darren Findling explains tenants in common, ordinary joint tenancy, full rights of survivorship, tenancy by the entirety, and how a deed may affect probate.
A deed does more than list the owners of real estate. It can determine how much each person owns, whether an owner can transfer an interest, and what happens to the property when an owner dies.
Small differences in deed language can lead to very different results. A family may believe the surviving owner will automatically receive the property, only to learn that the deceased owner had a separate share that must be transferred through a trust or probate.
The opposite can also happen. An effective survivorship provision may cause the property to pass directly to the surviving owner even when the deceased owner’s will says something different.
Ownership and Estate Planning
Why Michigan Deed Ownership Types Matter
The way property is titled can affect control, inheritance, probate, lifetime transfers, creditor claims, and the right to ask a court to divide or sell the property.
Assume a deed transfers a home to John Smith and Mary Smith. Their names appear on the deed, but that alone does not answer every ownership question.
- Do John and Mary own equal or unequal shares?
- Does the survivor automatically receive the property?
- Can either owner transfer an interest?
- Can either owner ask a court to divide or sell the property?
- Will an owner’s interest become part of a probate estate?
- Are the owners married to each other?
- Were there later deeds, liens, judgments, or court orders?
No one ownership type is right for every situation. The appropriate form depends on the owners, their goals, the deed language, and the possible legal and tax consequences.
Michigan’s Starting Rule
What Happens When a Deed Does Not Clearly State the Ownership Type?
Under Michigan Compiled Laws § 554.44, a transfer of land to two or more people generally creates a tenancy in common unless the deed expressly creates a joint tenancy.
Simply placing two names on a deed does not necessarily give the owners a right of survivorship.
Transfers to spouses are treated differently under Michigan Compiled Laws § 554.45. A deed transferring Michigan real estate to both spouses generally creates a tenancy by the entirety unless the deed clearly provides for a different ownership form.
A deed transfers a house to Alex and Jordan, who are not married to each other. The deed does not mention survivorship or another ownership form.
The deed generally creates a tenancy in common. If Alex dies, Alex’s share does not automatically become Jordan’s property.
Separate Ownership Shares
Tenants in Common
Tenants in common each own a separate share of the same property. The owners may have equal shares, such as 50% each, or unequal shares, such as 70% and 30%.
Each owner has a share that can generally be transferred or inherited. When one owner dies, that share does not automatically pass to the other owner.
Equal Shares
John owns 50%, and Mary owns 50%.
Unequal Shares
John owns 70%, and Mary owns 30%.
What Happens When an Owner Dies?
If John and Mary own property as tenants in common and John dies, John’s share does not automatically become Mary’s property.
John’s share may pass through a trust, through probate under his will, or under Michigan intestacy law if no effective nonprobate transfer controls the property.
Can One Owner Transfer a Share?
A tenant in common can generally transfer that owner’s share. The new owner may then become a co-owner with the remaining tenant or tenants in common.
A person with the required possessory interest may also ask a court to partition the property. Depending on the property and the facts, partition may involve a physical division or a court-ordered sale and division of the proceeds.
Survivorship That May Be Severed
Ordinary Joint Tenancy
An ordinary joint tenancy includes a right of survivorship. If the joint tenancy remains in place when one owner dies, the surviving owner or owners receive the deceased owner’s interest.
The survivor may receive the deceased owner’s interest automatically, but one owner may be able to end that survivorship right by transferring the owner’s interest during life.
For example, a transfer by one joint tenant may convert the relationship between the new owner and the remaining original owner into a tenancy in common.
The original deed and every later transfer must be reviewed before deciding whether the right of survivorship remained in effect.
Stronger Survivorship Protection
Joint Ownership With Full Rights of Survivorship
Michigan treats some deeds containing express survivorship language differently from ordinary joint tenancies.
Language such as “joint tenants with full rights of survivorship” may create what Michigan law calls a joint life estate with dual contingent remainders.
Each original owner has a current ownership interest and a protected future interest that may allow that owner to receive the entire property by surviving the other original owner.
One original owner cannot act alone and destroy the other original owner’s contingent survivorship interest.
Can an Owner Still Transfer an Interest?
Yes. An owner may transfer that owner’s interest in the joint life estate. The transfer does not destroy the other original owner’s contingent survivorship interest.
A recipient receives only the interest the transferring owner can legally convey. The transferred life-estate interest remains limited by the lives of the original owners.
The final result may depend on which original owner dies first, what interests were transferred, and the legal effect of those transfers.
Can the Property Be Partitioned?
The joint life-estate portion may be subject to a partition case. Depending on the property and the circumstances, the court may physically divide the possessory interests or order another form of relief.
Partition of the joint life estate does not eliminate the original owners’ contingent survivorship interests. Those future interests are not themselves subject to partition.
Michigan Supreme Court Decision
What Albro v. Allen Means for Property Owners
Michigan Supreme Court
Albro v. Allen, 434 Mich. 271; 454 N.W.2d 85 (1990)
The deed in Albro stated that two people owned property “as joint tenants with full rights of survivorship.”
What Happened?
Carol Allen and Helen Albro owned commercial property together. Allen later agreed to transfer her interest to another person. Albro argued that Allen should not be allowed to make the transfer.
What Did the Court Decide?
Both original owners held interests in the joint life estate and could use and possess the property subject to the other owner’s rights.
Each original owner held a future interest that depended on surviving the other original owner.
One owner could transfer that owner’s interest in the joint life estate.
One owner’s transfer could not destroy the other original owner’s contingent survivorship interest.
The transferred life-estate interest could not last longer than the joint life estate held by the original owners.
The joint life-estate portion could be partitioned without affecting the contingent survivorship interests.
Why Does This Matter for Probate?
Property subject to an effective survivorship interest may pass outside the first deceased owner’s probate estate. That is why the deed and all later transfers should be reviewed before assuming that the deceased owner’s will controls the property.
Ownership for Married Couples
Tenancy by the Entirety
Tenancy by the entirety is a form of property ownership available to married couples. A deed transferring Michigan real estate to both spouses generally creates this form of ownership unless the deed clearly provides otherwise.
The spouses own the property together. When the first spouse dies, the surviving spouse ordinarily becomes the sole owner without a probate transfer of the deceased spouse’s interest.
One spouse ordinarily cannot transfer the entire property free of the other spouse’s rights by acting alone.
Tenancy by the entirety may protect the property from some claims based solely on the separate debt of one spouse. The protection is not absolute and may depend on the creditor, the type of debt, federal law, liens, fraudulent-transfer issues, and whether both spouses are responsible for the obligation.
One Person Named as Owner
Individual Ownership
This language identifies John as the owner and describes his marital status. It does not, by itself, give John’s unnamed spouse an ownership interest.
If John dies while the property remains in his name alone, the property may pass through a trust, through probate under his will, or under Michigan intestacy law.
Marital rights, liens, creditor claims, homestead issues, or other title questions may still affect the property.
Resolving Conflicting Claims
Quiet Title and Michigan Deed Ownership Disputes
Title Litigation
A quiet title action is a lawsuit used to determine competing legal or equitable interests in real estate. In everyday terms, it asks the court to decide whose ownership or title claim is legally superior.
It may be used when deeds conflict, ownership is disputed, a lien or recorded document creates a possible title problem, or a probate-related transfer leaves uncertainty about who owns the property.
The age of a mortgage, lien, or other recorded document does not automatically make it invalid or removable. The document, the title history, and the surrounding facts must be reviewed.
Michigan Court Rule 3.411 requires the person filing the case to describe the property, identify the interests claimed by the parties, and state the facts showing why the filer believes that person’s interest is legally superior.
A quiet-title judgment decides the interests addressed in the lawsuit. Its effect may depend on whether all necessary parties were included and properly served.
What Is a Quiet-Title Action?
Watch this brief explanation of how a quiet-title action may be used to address competing deeds, disputed ownership, title defects, and other claims involving Michigan real estate.
Presented by Darren Findling of The Probate Pro.
Side-by-Side Comparison
Michigan Deed Ownership Types Comparison Chart
This chart provides a general comparison. The complete deed, later transfers, title history, and applicable law control the actual result.
Swipe horizontally to view the complete comparison table.
| Ownership type | How ownership works | Can an owner transfer an interest? | What may happen at death? | Possible probate result |
|---|---|---|---|---|
| Tenancy in common | Each owner has a separate share | An owner may generally transfer that owner’s share | The deceased owner’s share does not automatically pass to the other owner | Probate may be needed unless the share was transferred another way |
| Ordinary joint tenancy | The owners share the property and have survivorship rights while the joint tenancy remains intact | A transfer by one owner may sever survivorship for the transferred interest | The surviving owner may receive the deceased owner’s interest if the joint tenancy remains in place | The interest may pass outside probate |
| Full rights of survivorship | Each original owner has a present life-estate interest and a contingent survivorship interest | An owner may transfer the owner’s life-estate interest but cannot destroy the other original owner’s contingent survivorship interest | The result depends on which original owner survives and the legal effect of any transfers | An effective survivorship interest may pass outside probate |
| Tenancy by the entirety | Married spouses own the property together | One spouse generally cannot transfer the entire property free of the other spouse’s rights | The surviving spouse ordinarily becomes the sole owner | Usually passes outside probate when the first spouse dies |
| Individual ownership | One person is named as the owner | The owner may generally transfer the property, subject to existing rights and restrictions | The property may pass through a trust, will, intestacy, or another effective transfer | Probate may be needed |
Probate and Non-probate Transfers
How Michigan Deed Ownership Types Affect Probate
Property That May Require Probate
- Real estate held only in the deceased owner’s name
- A deceased tenant in common’s share
- An interest after survivorship was validly severed
- Property that was not properly transferred into a trust
- Property affected by an invalid or undelivered deed
Property That May Pass Outside Probate
- Property passing through an effective joint tenancy
- Property covered by effective survivorship language
- Entireties property passing to a surviving spouse
- Property properly titled in a trust
- Property covered by another valid nonprobate transfer
Why a Will May Not Control the Property
A will generally controls property that becomes part of the probate estate. It generally does not redirect property that passes automatically under an effective survivorship deed or another nonprobate arrangement.
The deed and all later transfers must be reviewed to determine whether the survivorship right was still effective when the owner died.
Deaths Occurring Close Together
Michigan’s 120-Hour Survival Rule
In situations covered by Michigan Compiled Laws § 700.2702, a person who is not proven by clear and convincing evidence to have survived the relevant event by 120 hours—five days—is generally treated as having predeceased that event.
When two co-owners with a right of survivorship die close together and neither is proven to have survived the other by 120 hours, one-half of the co-owned property generally passes as though one owner survived, and one-half passes as though the other owner survived.
For purposes of this rule, co-owners with a right of survivorship include joint tenants, tenants by the entirety, and other co-owners entitled to receive the whole property when another owner dies.
Statutory exceptions may apply. For example, a deed, trust, will, or other governing document may contain its own language addressing simultaneous deaths or may require a different survival period.
Avoidable Ownership Problems
Common Michigan Deed Ownership Mistakes
Leaving the Ownership Type Unclear
A deed naming multiple nonspouse owners without clear ownership language generally creates a tenancy in common instead of survivorship ownership.
Assuming Tenants in Common Always Own Equal Shares
Tenants in common may own equal or unequal shares. The deed and other relevant documents should be reviewed to determine the owners’ respective interests.
Treating Every Joint Tenancy the Same
An ordinary joint tenancy and ownership with full rights of survivorship can have different transfer, partition, and inheritance consequences.
Assuming Full Survivorship Prevents Every Transfer
An owner may transfer that owner’s interest in the joint life estate. The transfer does not destroy the other original owner’s contingent survivorship interest.
Assuming Full Survivorship Prevents Every Partition
The joint life-estate portion may be partitioned without eliminating the contingent survivorship interests. The contingent future interests themselves are not subject to partition.
Believing a Will Automatically Overrides Survivorship
A will generally does not redirect property that passes outside probate under an effective survivorship arrangement.
Assuming Marital Status Adds an Unnamed Spouse
Describing an owner as married does not, by itself, make the unnamed spouse an owner.
Assuming an Old Lien Is Automatically Invalid
The age of a mortgage, lien, or recorded document does not alone determine whether it remains valid, enforceable, or removable.
Before Preparing or Recording a Deed
Questions to Ask About Michigan Deed Ownership Types
- Who should own the property now?
- Should the survivor automatically receive the property?
- Should each owner have a separately inheritable share?
- Are the owners married to each other?
- Are there children from prior relationships?
- Should the owners have equal or unequal shares?
- Could creditor claims affect the proposed ownership?
- Does the deed coordinate with a trust or estate plan?
- Could the transfer affect a mortgage or title insurance policy?
- Have earlier deeds, liens, judgments, and probate orders been reviewed?
- Was the deed properly signed and delivered?
- Is there a title dispute that may require court involvement?
Answers to Common Questions
Michigan Deed Ownership Types: Frequently Asked Questions
These answers provide a general overview. The actual result depends on the complete deed, later transfers, title history, marital status, court orders, and other facts.
What are the main Michigan deed ownership types?
What happens if a Michigan deed names two people but does not state the ownership type?
Do tenants in common always own equal shares?
What is the difference between an ordinary joint tenancy and full rights of survivorship?
What did Albro v. Allen decide?
Can property with full rights of survivorship be partitioned?
What is a quiet-title action in Michigan?
Can a will override a survivorship deed?
What is Michigan’s 120-hour survival rule?
About Darren Findling
Darren Findling helps families, fiduciaries, and attorneys with probate, trusts, estates, guardianships, conservatorships, property transfers, and title disputes.
Michigan Legal Authorities
Questions About a Deed, Ownership Interest, or Title Dispute?
The wording and history of a deed can affect ownership, survivorship, inheritance, probate, partition, and title claims. The Probate Pro can review the recorded documents and help identify the issues that may need to be addressed.
Include the county where the property is located and the exact wording shown on the recorded deed.