California Real Estate Practice Exam

What happens to a joint tenancy when one joint tenant deeds their interest to another party?

1. All joint tenants must agree

2. Joint tenancy can no longer exist, and tenancy in common arises

3. New joint tenant is added

4. Original joint tenant remains sole owner

The correct answer is: All joint tenants must agree

When a joint tenant deeds their interest to another party, the nature of the original joint tenancy is fundamentally altered. In a joint tenancy, all joint tenants hold equal shares of the property with the right of survivorship, meaning that if one of the joint tenants dies, their interest automatically goes to the surviving joint tenants. However, if one joint tenant decides to transfer their interest to someone outside the existing joint tenants, it disrupts the unity required for joint tenancy. Consequently, the joint tenancy can no longer persist, and a tenancy in common is created instead. In a tenancy in common, the new party holds an interest in the property but does not have the right of survivorship; their share can be passed on to their heirs. The original joint tenants who remain will still hold their respective interests, but now their structure is different, changing it to a tenancy in common with this new owner. Understanding this transformation underscores the importance of the right of survivorship inherent in joint tenancy, which is forfeited when any joint tenant conveys their interest to someone else. This is foundational knowledge in real estate law and is crucial for anyone practicing in this field.