How to create a verified customer for a joint tenancy

The docs don’t discuss how to create a verified customer for a joint tenancy. This could be a Tenancy in Common, Tenancy by the Entirety, or Joint Tenancy with Rights of Survivorship.

This is somewhat similar to a trust, which can have multiple trustees. The docs tell us to us treat a trust as a sole proprietorship, where the owner is the trustee that performs registration.

Should we do the same for joint tenancy?

Hoped for an answer by now. I’m going ahead and creating the verified customer as a sole proprietorship, as directed for an unincorporated association or trust.

Please let me know if that is incorrect.

Hi @gfb107 – we do not have an account type for joint tenancy specifically. What kind of funding source is being attached to the customer, is it a personal consumer account or is it a business account? This will help us determine which existing account type you can use.

This is a general question about the API, not a question about a specific customer.

Typically, a joint tenancy is a business relationship, and will have multiple owners, but is not required to have an EIN.

A joint tenancy might also be spouses using a joint personal account.

Thanks for the clarification, Greg. Our Compliance team recommends the following for Joint Tenancy customer.

The authorized account holder should be what dictates the type of account. If it is a business account then it should be set up under a business account. Soleprop account types are really meant for one owner, but yes we also allow a soleprop to be used for trusts because our product is not created for every scenario.

If the funding source is not in a business name, and say there are several individuals as authorized signers, they may just want to set up as a personal VCR under one of the authorized signer’s names, but if it is a business account it really needs to be under a business account type to ensure the correct SEC code is applied since business accounts have a shorter return window.

I think the only business type the API supports without a controller and ein is a sole proprietorship.

So even though sole proprietorship is not a true match for joint tenancy (which is also the case for a trust or unincorporated association), it is the only choice that works with the Dwolla API.

Have I missed something?

Hi Greg,

That is correct! Except, if the bank account to be used by the joint tenancy is a personal consumer bank account, then they must be created as a Personal Verified Customer to ensure that there are no issues when creating transfers.