James and Karen are purchasing a home in Nevada as a married couple. They want to hold title in a way that combines community property treatment with automatic survivorship so that the property avoids probate when one spouse dies. Which form of title should their Nevada purchase agreement specify?
Correct Answer
D) Community property with right of survivorship
Nevada law specifically recognizes 'community property with right of survivorship' as a distinct form of title available to married couples. This form combines the tax advantages of community property (including the full step-up in basis at death) with automatic survivorship, meaning the property passes to the surviving spouse without going through probate. This form must be expressly stated in the deed and does not arise automatically from marriage or from simply holding property as community property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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