Elise, Fred, and Gina own a commercial building in Provo as joint tenants. Fred conveys his one-third interest to his LLC. Elise and Gina are unaware of this transfer. What is the ownership structure of the property after Fred's conveyance under Utah law?
Correct Answer
A) Elise and Gina remain joint tenants between themselves for a two-thirds interest; Fred's LLC holds a one-third interest as a tenant in common with them.
When one of three joint tenants conveys their interest to a third party, only that portion of the joint tenancy is severed. The two remaining joint tenants (Elise and Gina) continue to hold their two-thirds interest as joint tenants between themselves, preserving their right of survivorship as to each other. Fred's LLC receives a one-third interest as a tenant in common with Elise and Gina. This is the 'partial severance' rule — the joint tenancy is severed only as to the interest conveyed, not as to the entire property.
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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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