Yolanda and Zach own a rental property in West Valley City as joint tenants. Yolanda, without Zach's knowledge, executes a deed conveying her interest to herself alone, then immediately reconveys it back to herself and Zach 'as joint tenants with right of survivorship.' The purpose is to restart the joint tenancy clock for estate planning reasons. Under traditional Utah property law principles, what is the most likely legal effect of these transactions?
Correct Answer
A) The first deed severs the original joint tenancy; the second deed creates a new joint tenancy between Yolanda and Zach.
Under traditional common law, a person could not convey property to themselves (the same-person grantor-grantee problem), requiring the use of a 'straw man' intermediary. However, modern Utah property law — following the trend in most states — recognizes that a joint tenant may convey their interest to themselves to sever the joint tenancy, and may then reconvey to create a new joint tenancy. The first deed severs the original joint tenancy (destroying the four unities). The second deed, conveying to Yolanda and Zach 'as joint tenants with right of survivorship,' creates a new joint tenancy. This technique, while unusual, is legally effective in Utah under modern property law principles.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A life estate is a freehold estate that grants ownership rights for the duration of someone's life.
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
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