Three business partners — Ava, Ben, and Chen — purchase a commercial building in Reno as joint tenants with right of survivorship. Ben later sells his interest to Diana without the knowledge of Ava or Chen. What is the most accurate description of the ownership structure after Ben's conveyance to Diana?
Correct Answer
B) Diana holds a one-third interest as a tenant in common; Ava and Chen continue as joint tenants between themselves.
Under Nevada law, consistent with the common law rule recognized in NRS Chapter 111, a joint tenant may unilaterally convey their interest to a third party without the consent of the other joint tenants. However, doing so severs the joint tenancy only as to the conveyed interest. Diana, as the new owner of Ben's former one-third share, holds as a tenant in common with the remaining co-owners. Ava and Chen, who did not convey their interests, retain the joint tenancy relationship between themselves. This partial severance creates a hybrid: Diana (1/3 as TIC) + Ava and Chen (2/3 as joint tenants between themselves).
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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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