David owns a 40% undivided interest in a commercial building in Rapid City, South Dakota, as a tenant in common with two other investors. David wants to sell his interest without obtaining consent from his co-owners. Under South Dakota law, which of the following statements is correct?
Correct Answer
D) David may freely transfer his 40% interest without the consent of the other co-owners.
Under South Dakota law, a tenant in common holds a separate, undivided interest in the property that is freely alienable. David may sell, mortgage, or otherwise transfer his 40% interest to any third party without obtaining consent from the other co-owners. The new buyer would then step into David's position as a tenant in common with the remaining co-owners.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
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