Four investors — Alice, Bob, Carol, and Dan — take title to a commercial building in Seattle as joint tenants. Bob later conveys his interest to Carol by deed. Subsequently, Alice dies without a will. Assuming no other transfers have occurred, which of the following correctly describes the ownership structure after Alice's death?

Correct Answer

C) Carol owns 50% as a tenant in common, and Dan inherits Alice's interest by survivorship, owning 50% in severalty

This question requires tracking two events. Step 1: When Bob conveyed his 25% interest to Carol, that transfer severed Bob's joint tenancy interest. Carol now holds Bob's 25% as a tenant in common with the remaining joint tenants. However, Carol was already a joint tenant holding her own original 25% interest. The result: Carol holds 25% (original) as a joint tenant with Alice and Dan, PLUS 25% (from Bob) as a tenant in common. Alice and Dan remain joint tenants with each other (and with Carol's original interest). Step 2: When Alice dies, the joint tenancy survivorship right operates between the remaining joint tenants — Dan and Carol's original 25% interest. Dan inherits Alice's 25% joint tenancy interest by survivorship, giving Dan 50% total. Carol's original 25% (joint tenancy) also survives to Dan, meaning Dan holds 50% total in severalty (his original 25% + Alice's 25% by survivorship), while Carol holds 50% as a tenant in common (Bob's transferred 25% plus her own original 25% that merged with Dan's survivorship claim). The correct net result: Carol holds 50% as tenant in common; Dan holds 50% having received Alice's interest by survivorship.