Kevin, Luis, and Sandra purchase an investment property in Dover, Delaware as joint tenants with right of survivorship. Kevin later conveys his interest to his business partner, Greg, without informing Luis or Sandra. Which of the following best describes the ownership structure after Kevin's conveyance to Greg?
Correct Answer
D) Greg holds his interest as a tenant in common, while Luis and Sandra remain joint tenants with each other
When one joint tenant conveys their interest to a third party, that conveyance severs the joint tenancy only as to the transferring party's share. The new owner (Greg) takes title as a tenant in common with the remaining co-owners, because the four unities required for joint tenancy (time, title, interest, and possession) are broken between Greg and the others. However, Luis and Sandra, who did not convey their interests, retain their joint tenancy relationship with each other. This partial severance is a well-established principle of concurrent ownership law applicable in Delaware.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
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