National Real Estate Exam (PSI)Property OwnershipMedium
Three friends, Ann, Ben, and Cara, own a property as joint tenants with right of survivorship. Ben sells his interest to Diego. What is the resulting ownership structure?
- AThe joint tenancy is automatically dissolved for all three original owners
- BDiego automatically inherits Ann and Cara's shares if they die
- CDiego becomes a tenant in common while Ann and Cara remain joint tenants with each other
- DAnn, Cara, and Diego are all joint tenants with survivorship rights
Show answer & explanationAnswer & explanation
Correct answer: C. Diego becomes a tenant in common while Ann and Cara remain joint tenants with each other
When one joint tenant conveys their interest, the unity of time and title is broken for that share, making the new owner (Diego) a tenant in common. However, the remaining original joint tenants (Ann and Cara) still retain joint tenancy with each other since their unities remain intact.
Why the other options are wrong
- A. Only the transferred share is affected; the remaining owners keep their joint tenancy.
- B. Diego has no survivorship rights since he is a tenant in common, not a joint tenant.
- D. Diego cannot join the joint tenancy because the required unities weren't created simultaneously with him.
Severance of Joint Tenancy
When one joint tenant transfers their interest to a new party, that share becomes a tenancy in common while unaffected co-owners retain joint tenancy among themselves.
- Requires four unities: time, title, interest, possession
- Conveyance by one owner breaks unity only for that share
- Remaining original joint tenants keep survivorship rights with each other
Memory trick: Selling your slice cuts you out of the survivorship pie.