A property is held by three individuals as joint tenants. One joint tenant secretly sells their interest to an outside party without informing the other joint tenants. What is the legal result of this transaction?
Correct Answer
C) The joint tenancy is severed; the buyer becomes a tenant-in-common with the others
The unilateral sale of a joint tenant's interest severs the joint tenancy for that portion, converting it to a tenancy-in-common. The purchaser holds as a tenant-in-common while the remaining original owners may continue as joint tenants between themselves, creating a mixed ownership structure.
Why This Is the Correct Answer
Option C correctly identifies that the unilateral sale severs the joint tenancy. Under Canadian property law, joint tenancy requires the four unities (time, title, interest, possession). When one joint tenant sells their interest, the unity of time and title is broken for that portion. The purchaser becomes a tenant-in-common because they acquired their interest at a different time and through a different title than the original joint tenants. The remaining original owners may continue as joint tenants between themselves, creating a mixed ownership structure.
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A property is registered under British Columbia's Land Title Act with a restrictive covenant limiting use to residential purposes only. A subsequent owner wants to operate a home business. What is the legal effect of this covenant?