James and Maria are married and purchasing a home in Anchorage. They want to hold title in a way that gives each spouse equal ownership with the right of survivorship. Their attorney explains that Alaska is NOT a mandatory community property state but that couples may elect into community property under Alaska law. James and Maria decide they do NOT want to elect community property. Which form of ownership should they select to achieve equal ownership with right of survivorship under Alaska law?
Correct Answer
C) Joint tenancy with right of survivorship
Joint tenancy with right of survivorship is the appropriate form of ownership for James and Maria. It provides equal, undivided ownership interests and includes the right of survivorship, meaning that upon the death of one joint tenant, the surviving tenant automatically receives the deceased's interest without probate. Since they have decided not to elect into Alaska's optional community property system under the Alaska Community Property Act (AS 34.77), joint tenancy achieves their goals under Alaska's default common law property system.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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