Tom, Lena, and Raj hold a Bellevue investment property as joint tenants. Without the others' knowledge, Raj executes a deed conveying his interest to a limited liability company he controls. Which of the following best describes the legal effect of Raj's transfer under Washington law?
Correct Answer
B) Raj's transfer severs his joint tenancy interest, converting the LLC's share into a tenancy in common while Tom and Lena remain joint tenants with each other
Under Washington property law, a joint tenant may unilaterally convey their interest to a third party, which severs the joint tenancy as to that interest. The transferee (the LLC) takes the interest as a tenant in common, not as a joint tenant, because the four unities (time, title, interest, possession) are broken. Importantly, the joint tenancy between the remaining original joint tenants — Tom and Lena — is preserved. The result is that Tom and Lena remain joint tenants with each other, while the LLC holds its one-third share as a tenant in common with both of them.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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