A property owner in Jonesboro, Arkansas, dies and leaves a will devising her home to her two adult children, Kevin and Angela, 'as joint tenants with right of survivorship.' Kevin later files for bankruptcy, and the bankruptcy trustee seeks to sell Kevin's interest in the home to satisfy Kevin's debts. Angela argues that Kevin's interest cannot be sold because of the joint tenancy. Which of the following is most accurate under Arkansas law?
Correct Answer
B) The bankruptcy trustee can sell Kevin's interest, but doing so will sever the joint tenancy and convert Kevin's share to a tenancy in common held by the purchaser
Under Arkansas property law, a joint tenant's interest is freely alienable — it can be transferred voluntarily or involuntarily (such as through a bankruptcy proceeding or judgment lien). However, any involuntary transfer severs the joint tenancy as to the transferred share, converting it to a tenancy in common. The bankruptcy trustee can sell Kevin's undivided one-half interest, and the purchaser will hold that interest as a tenant in common with Angela. Angela and the purchaser would not be joint tenants because the four unities required for joint tenancy (time, title, interest, possession) would not be present for the new co-owner.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
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.
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