Question

A group intends to buy real property jointly, as follows: Person A contributes $11,000; Person B, $10,000; Person C, $5,000; and Person D, $6,000. Each desires to protect their heirs' share of the property. How could they take title?

Options:
A) Joint tenancy
B) Tenancy by the entirety
C) Tenancy in common
D) Community property

Answer 1

The group should choose Tenancy in Common to ensure their heirs can inherit their respective shares. This form of ownership allows for unequal shares and direct bequeathing to heirs, unlike the other options.

Step-by-step explanation:

The group should take title as Tenancy in Common if they want to protect their heirs' share of the property. In a tenancy in common, each owner holds a distinct share of the property, which they can bequeath to their heirs. These shares can be of unequal size; thus, Person A would own a 36.67% share, Person B a 33.33%, Person C a 16.67%, and Person D a 13.33% share, based on their contributions of $11,000, $10,000, $5,000, and $6,000 respectively. In contrast, joint tenancy requires equal ownership and includes a right of survivorship, meaning that shares cannot be inherited, but rather are absorbed by the surviving owners. Tenancy by the entirety is similar but exclusive to married couples, and community property pertains to married couples' possessions in some states, none of which provide the individual control over one's share like tenancy in common does.

ANswer: C) Tenancy in common