California Real Estate SalespersonProperty Ownership and Land Use ControlsMedium
Three individuals form a general partnership to acquire and develop commercial real estate. Title to the property is taken in the partnership's name for partnership business purposes. This method of holding title is called:
- AJoint tenancy
- BTenancy in common
- CCommunity property
- DTenancy in partnership
Show answer & explanationAnswer & explanation
Correct answer: D. Tenancy in partnership
Property acquired by a partnership for partnership purposes is held as 'tenancy in partnership.' Each partner has an equal right to use the property for partnership purposes, but no partner has a separately transferable interest, and upon a partner's death the interest passes to the surviving partners rather than to heirs.
Why the other options are wrong
- A. Joint tenancy involves individual co-owners with survivorship, not a business entity holding.
- B. Tenancy in common allows individual transferable interests and passes to heirs, unlike partnership property.
- C. Community property applies only to married couples, not business partners.
Tenancy in Partnership
A form of co-ownership where property acquired for partnership purposes is held collectively by the partnership, with no individual transferable interest.
- Each partner has equal right to use property for business purposes
- No partner may transfer their interest individually
- Upon a partner's death, interest passes to surviving partners, not heirs
Memory trick: Partnership property stays with the business, not the individual.