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. n . e - t - s o y r a r 8 n - - - e - - r - g 4 1 THE Alabama Lawyer Under earlier Alabama case , a joint tenancy Bernhard court ruled that the parties had intended to cre - could be destroyed by the conveyance of the interest ate a tenancy in common with right of survivorship, with of one of the joint tenants. 14 Following the creation of each party owning an undivided one-half interest for life, a joint tenancy, any subsequent conveyance by one of plus the right in the survivor to own the entire interest by the joint tenants would destroy the joint tenancy and a way of contingent . The Bernhard court further tenancy in common would result. 15 ruled that there can be no sale for division over the ob - The presumption of joint tenancy was jection of one tenant during their joint lives and that a di - abolished in Alabama. The original version of the law, vision may be had only with the consent of all grantees. now codified as Ala. Code , §35-4-7 provided that, In the Nunn case, a husband and wife conveyed real when one joint tenant dies, his or her interest does not property to themselves and their grandson as joint ten - survive to the other joint tenants. In 1945, the statute ants with right of survivorship. The wife died and the was amended to provide that this statutory presumption husband remarried. The husband and his new spouse favoring tenancies in common can be overcome by conveyed a one-half undivided interest in the real prop - clear language in a that a right of survivorship is erty to themselves for their joint lives with the remain - intended. For a discussion of the history of the law in der to the survivor. The Nunn court stated that the Alabama pertaining to join tenancies and tenancies in question before it involved the determination of the common, see Durant and the 1983 article by Robert P. type of estate was created by the 1949 deed. The Nunn Denniston. 16 court overruled Bernhard and stated that Ala. Code , The courts in Alabama have ruled that unity of time §35-4-7 was intended to and did revive the common is no longer required in order to create a joint tenancy. 17 law joint tenancy in Alabama. The court explained that Therefore, a deed by a grantor to a grantee which the statute required that an intent to create a right of clearly expresses an intention to create joint tenancy survivorship must be clearly expressed and clarified with right of survivorship in the grantor and grantee is that the statute eliminated the common law unity of now sufficient to create joint tenancy with right of sur - time formerly required to create a joint tenancy. The vivorship. The Germaine court stated that Ala. Code , Nunn court further ruled that joint tenancy is destructi - §35-4-7 requires the intent of survivorship to be ex - ble by one co-tenant and therefore the deed conveying pressed in the instrument of conveyance and eliminated one-half undivided interest to the husband and his sec - the common law requirement of unity of time. ond wife destroyed the joint tenancy. Consequently, upon the death of the husband the second wife became 1983 Robert P. the sole owner of one-half interest and a tenant in com - mon with the grandson. Although Nunn overturned Denniston Article Bernhard , the overruling effect of Nunn was later held to be prospective only, and applicable only to In his 1983 Alabama Lawyer article, Robert Dennis - created after the decision in Nunn .19 This created what ton discussed the issues and cases pertaining to “de - the courts call the “ Bernhard window.” The Bernhard structible” and “indestructible” survivorship. Mr. ruling continues to apply to deeds creating joint tenan - Denniston brought to the attention of the bar the cases cies with right of survivorship executed between the of Bernhard v. Bernhard , Nunn v. Keith and Durant v. date of the Bernhard decision (July 15, 1965) and the Hamrick. 18 date of the Nunn decision (November 9, 1972). A deed In the Bernhard case, a husband and wife took title to created within the “ Bernhard window” results in a joint property as joint tenants with right of survivorship. The tenancy that is indestructible. 20 husband filed a bill seeking to have the property sold for In the Durant case, a husband and wife took title by division. The Bernhard court stated that the sole ques - deeds “as tenants in common and with equal rights and tion to be decided was whether property held under a interest for the period or term that the said Grantees

r joint tenancy with right of survivorship may be sold for shall both survive and unto the survivor of the said e y

w division at the insistence of one of the tenants over the Grantees, at death of the other....” Prior to the hus - a

L Bernhard

objection of the other. The court further stated band’s death, the wife deeded her interest to her son a

m that joint tenancies as known to the common law have subject to a . The argument was made that a

b Nunn

a been abolished by statute, but that if survivorship is ruled that joint tenancies with right of survivor - l A

clearly stated as an incident to the estate of tenancy in ship have been revived if clearly stated in the deed, that E H

T common, then a right of survivorship is allowed. The a joint tenant could convey his or her interest and that

42 January 2017 such a conveyance would destroy the joint tenancy and decree that provided the first wife would have exclusive result in a tenancy in common between the owners. right to occupy the . The husband married a Durant held that although Nunn was correct, it did not second wife and he remained married to the second apply to the facts in Durant because the deed in Durant wife until his death. The Porter court stated that the created a tenancy in common with survivorship. A ten - major distinction between a tenancy in common and a ancy in common with survivorship is a tenancy in com - joint tenancy is that the interest held by tenants in com - mon for life with a contingent remainder to the mon is divisible and descendible, whereas the interest survivor. Durant also held that a tenancy in common held by joint tenants passes automatically to the last sur - with right of survivorship is not de - vivor. The second wife argued that structible by a co-tenant. The Durant because the divorce decree awarded court stated: “We are persuaded that The husband and his the first wife exclusive occupancy of Alabama should likewise recognize the real property, the first wife’s ex - a form of concurrent property own - new spouse conveyed clusive possession of the property ership as tenants in common which a one-half undivided destroyed the unity of possession. provides for survivorship. This form Consequently, because the unity of of concurrent ownership can be interest in the real possession had been destroyed, the characterized as creating concurrent joint tenancy was also destroyed re - life estates with cross-contingent re - property to themselves sulting in a tenancy in common. The mainders in fee; or a tenancy in Porter court held that a divorce de - common for life with a contingent for their joint lives cree which is silent with respect to remainder in favor of the survivor.” with the remainder property held jointly with right of The result of these cases is that survivorship does not automatically there are now two forms of survivor - to the survivor. destroy the existing survivorship ship in Alabama: joint tenancy with provisions. right of survivorship, which is destructible, and tenancy In the cases of Summerlin v. Bowden and Owens v. in common with right of survivorship, which is inde - Owens ,23 the courts, relying on Bernhard , held that structible keeping in mind the “ Bernhard window.” the circuit court has the power to adjust the ownership of property held by joint tenants who are parties to a Divorce, Sale for divorce action when the parties invoke the jurisdiction of the equity court. The Summerlin court stated “… Division, and there can be no compulsory in the absence of consent of the tenants, except in those cases where the Bankruptcy tenants have invoked the jurisdiction of the equity court in a divorce proceeding with regard to the prop - In properly advising a client, the attorney should be erty in question.” aware of the cases pertaining to divorce, sale for divi - In the case of Johnson v. Johnson, 24 a question arose sion, liens against real property and bankruptcy. in a divorce action as to whether or not a husband and I divorce wife held title as joint tenants or tenants in common with right of survivorship. The Johnson court con - The Alabama courts have generally held that a di - cluded that whether the husband and wife were joint vorce decree which is silent with respect to property tenants or tenants in common in the property was not held jointly with right of survivorship does not auto - dispositive. The Johnson court ruled that the parties matically destroy the existing survivorship provisions, had submitted themselves to the jurisdiction of the eq - but that if the parties submit themselves to the juris - uity court for a divorce decree and when they did so diction of the equity court for a divorce decree, then had empowered the equity court to supply the consent r 25 e the court is empowered to supply the consent of the y

of either party to a division of their property. w 21 a parties. L 22 I sale for division a

In the case of Porter v. Porter, a husband and his m a

first wife purchased a home under a 1963 deed as joint b

The Alabama courts have held that a complaint for a l

tenants with rights of survivorship. The husband and A

sale for division of land between joint owners or ten -

26 E

first wife were divorced pursuant to a 1976 divorce H

ants in common is a matter of right. T

www.alabar.org 43 In the case of Granite Equipment Leasing Corpora - of survivorship was not included within the range of tion v. Smith’s Pride Foods, Inc., 27 a judgement debtor estates laid out in 11 U.S.C. §363(h). and his wife held title to real property as joint tenants In the case of In re Spain, 31 the debtor husband and with rights of survivorship. The question posed by the non-debtor wife acquired title to a parcel of real prop - Granite court concerned the extent of execution avail - erty by 1973 deed “…for and during their joint lives able against the defendant’s joint tenancy interest. and upon the death of either of them, then to the sur - The judgment debtor, relying on Brown v. Andrews ,28 vivor of them in , together with every con - contended that his interest in the joint tenancy was tingent remainder and right of reversion.” The Spain limited to a life estate. The Brown case, based on the court held that the 1973 deed created a joint tenancy Bernhard ruling, concluded that the two interests held with a destructible right of survivorship, not a tenancy by a joint tenant with right of survivorship are a life in common with indestructible rights of survivorship, estate and a contingent remainder in the whole and and the trustee was not prohibited under 11 U.S.C. that only the life estate is subject to execution. The §363(h) from selling the property. Granite court discussed the Nunn In the case of In re Tibbetts, 32 the case observing that Nunn had ex - debtor husband and non-debtor wife pressly overruled Bernhard . The The argument is had acquired real property by a Granite court concluded that since 1965 deed which conveyed property Nunn expressed the current law in made that the one- to them “…as tenants in common, Alabama, there is no longer any with equal interest for the period or reason to limit the leviable interest half interest in the term that said Grantees shall both of a joint tenant to a life estate and property is actually survive, and unto the survivor of that execution may proceed against said Grantees at the death of the the interest of the judgment debtor. non-existent due to other….” The debtor husband and I Liens and Bankruptcy non-debtor wife were divorced and the possibility that their 1989 divorce decree provided The bankruptcy courts have rec - that the jointly owned home place ognized the history of the Bernhard the debtor may would remain in the joint names of and Nunn cases and have ruled that predecease the owner the parties, with right of survivor - the nature of the interest in property ship, until the ex-wife remarried at is to be determined by non-bank - of the other one-half which time the home place would ruptcy state law. 29 be sold and the net proceeds equally In the bankruptcy case of In re interest. divided between the parties. The Livingston, 30 the Livingstons took Tibbetts court recognized the history title by 1972 deed to real property “…for and during of the Bernhard and Nunn cases and the In re Spain their joint lives, and upon the death of either of them, and In re Livingston cases and ruled that the 1989 then to the survivor of them in fee simple, and to the judgment of divorce converted the indestructible ten - heirs and assigns of such survivor.” The Livingston ancy in common into a destructible joint tenancy court held that the 1972 deed to the Livingstons fell which falls within the scope of 11 U.S.C. §363(h). within the “ Bernhard window” as a tenancy in com - Tut Wynne, a prominent bankruptcy lawyer practic - mon for life with cross-contingent remainders of sur - ing in the United States Bankruptcy Court of the vivorship and that such an interest was contemplated Southern District of Alabama, Mobile Division, in - neither by Congress nor Alabama law as being em - forms the writer that it is the practice for some attor - braced in the language in 11 U.S.C. §363(h). The Liv - neys representing debtors to argue the position that ingston court further held that the trustee could sell the value of the debtors’ interest in property held by

r the debtor’s complete interest, along with the non- tenancy in common with right of survivorship is less e y

w debtor spouse’s interest as a tenant in common, but than the “fair market value.” The argument is made a L

that the trustee was not authorized by 11 U.S.C. that the one-half interest in the property is actually a

m §363(h) to force a sale of the non-debtor spouse’s non-existent due to the possibility that the debtor may a

b Livingston

a contingent remainder in survivorship. The predecease the owner of the other one-half interest. l A

court upheld the district court’s ruling that a tenancy The argument is further made that the older the E H

T in common for life with a cross-contingent remainder debtor, the less value is in the debtor’s life estate.

44 January 2017 Recent Alabama contained in this Warranty Deed, all that real property in the County of ______, State of Legislation Alabama, described as follows, to-wit: I Habendum Clause: The Alabama legislature recently enacted Ala. Code , §30-4-17 that provides in part: TO HAVE AND TO HOLD unto the said “…(b) Except as provided by the express terms of a Grantees, during their joint lives, and upon the governing instrument, a court order, or a re - death of either of said Grantees, then to the sur - lating to the division of the marital estate made be - vivor of said Grantees, and to the heirs and as - tween the divorced individuals before or after the signs of said survivor, in fee simple, FOREVER. marriage, divorce, or annulment, the divorce or annul - I Warranty Clause: ment of a marriage:… And, except as to the above and taxes hereafter (2) severs the interests of the former spouses in prop - falling due, which are assumed by the Grantees, erty held by them at the time of the divorce or the Grantors, for the Grantors and for the heirs and annulment as joint tenants with the right of sur - assigns of the Grantors, AND WAR - vivorship transforming the interests of the for - RANT to and with the said Grantees, the survivor mer spouses into equal tenancies in common.” of said Grantees, and the heirs and assigns of said This statute does not speak specifically to tenancy in survivor, that the Grantors are seized of an inde - common with right of survivorship or to any of the is - feasible estate in fee simple in and to said real sues addressed in this article. Only time will tell how property, and have a good and lawful right to sell the Alabama courts will interpret the provisions of and convey the same; that the Grantors are in quiet this statute. and peaceable possession of said real property; and that said real property is free and clear of all liens Suggested Language in and of every kind and nature what - soever; and the Grantors do WARRANT AND Deeds WILL FOREVER DEFEND the title to said real property, and the possession of said real property, The drafter should be careful in drafting any deed unto the said Grantees, the survivor of said and make sure that there is no conflict or ambiguity in Grantees, and the heirs and assigns of said sur - the language between the granting clause, habendum vivor, against the lawful claims and demands of all clause and any other clauses in the deed. When con - persons whomsoever. flicts exist in a deed, the courts often look to the granting clause to control. 33 All clauses in the deed Suggested Language for should be consistent. Tenants in Common Suggested Language With Indestructible For Joint Tenants with Survivorship Right of Survivorship The following is an example of the language that The following is an example of the language that can be used in a deed granting to tenants in common can be used in a deed granting to joint tenants with with indestructible survivorship. destructible survivorship. I granting Clause: r e y

I granting Clause: w a

GRANT, BARGAIN, SELL AND CONVEY L

unto the said Grantees, as tenants in common a , BARGAIN, SELL AND CONVEY m a

with equal interests during the period of their b

unto said Grantees, as joint tenants, and upon the a concurrent lives, and upon the death of either of l A

death of either of them, to the survivor of said E

said Grantees, the remainder to the survivor of H

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A r A S i d 2 f 0 . - l o o l a 9 a . . r . g 4 7 THE Alabama Lawyer