Gary and his adult daughter, Melissa, purchase a rental property in Little Rock as joint tenants with right of survivorship. Two years later, Gary executes a deed conveying his interest to himself and his wife, Joan, 'as joint tenants with right of survivorship.' Gary does not inform Melissa of this transaction. Gary then dies. Who owns the rental property after Gary's death?
Correct Answer
C) Melissa owns a one-half interest as a tenant in common, and Joan owns a one-half interest as a tenant in common
This question involves two successive joint tenancy transactions. When Gary conveyed his interest to himself and Joan as joint tenants, that conveyance severed the original joint tenancy between Gary and Melissa as to Gary's share. At that point, Melissa held her one-half interest as a tenant in common with Gary and Joan (who held the other half as joint tenants between themselves). When Gary died, his one-half joint tenancy interest with Joan passed to Joan by survivorship — Joan now holds a one-half interest as Gary's surviving joint tenant. However, Melissa's one-half interest was never part of the Gary-Joan joint tenancy; she holds it as a tenant in common. Therefore, after Gary's death, Joan holds one-half as the surviving joint tenant of Gary's share, and Melissa holds one-half as a tenant in common. Joan and Melissa are tenants in common with each other.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
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