Three business partners — Alton, Bea, and Carl — purchase a commercial building in Montgomery, Alabama. The deed states they hold title as tenants in common, with Alton owning 50%, Bea owning 30%, and Carl owning 20%. Alton dies and leaves his entire estate to his daughter. Which statement BEST describes the ownership after Alton's death?
Correct Answer
B) Alton's daughter receives his 50% share and becomes a tenant in common with Bea and Carl.
In a tenancy in common, each co-owner holds a distinct, transferable share with no right of survivorship. Upon Alton's death, his 50% interest passes through his estate according to his will — to his daughter. She steps into Alton's position as a tenant in common, holding 50%, alongside Bea (30%) and Carl (20%). The ownership percentages remain unchanged.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
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