Two friends, Priya and Sam, purchase an investment property in Iowa as tenants in common. Priya owns a 60% undivided interest and Sam owns a 40% undivided interest. Sam dies intestate (without a will). Which of the following correctly describes what happens to Sam's 40% interest?
Correct Answer
B) Sam's 40% interest passes to his heirs according to Iowa's intestate succession laws.
Tenancy in common does not include the right of survivorship. Each tenant in common owns a separate, divisible, and inheritable interest. When Sam dies intestate, his 40% undivided interest passes to his heirs according to Iowa's intestate succession statutes, not to Priya. The new co-owner(s) will hold as tenants in common with Priya.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
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.
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