Three business partners — Nguyen, Okafor, and Petersen — purchase a commercial building in Detroit as tenants in common. Nguyen holds a 50% interest, Okafor holds 30%, and Petersen holds 20%. Okafor passes away and his will leaves all of his real property to his daughter. Which of the following correctly describes what happens to Okafor's 30% interest?
Correct Answer
A) Okafor's 30% interest passes to his daughter through his estate as directed by his will.
In a tenancy in common, each co-owner holds a separate, divisible interest with no right of survivorship. When Okafor dies, his 30% interest does not pass automatically to the surviving co-owners. Instead, it passes through his estate according to his will. Because Okafor's will leaves his real property to his daughter, she inherits his 30% undivided interest in the commercial building and becomes a tenant in common with Nguyen and Petersen.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Riparian rights concern properties bordering flowing bodies of water (rivers, streams), while littoral rights concern properties bordering non-flowing bodies of water (lakes, oceans).
The bundle of rights describes the rights associated with property ownership, allowing owners to use, control, enjoy, exclude others from, and dispose of the property.
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.
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