Question

A corporation is prohibited from holding title to real property in California with anyone as a joint tenant because:

Selections

A. It is a violation of the Securities Act

B. Of its perpetual existence

C. It is difficult to list all stockholders in the deed

D. A corporation cannot hold title to real property

---

Answer: B

---

5 Keys Summary

• Joint tenancy is primarily characterized by the right of survivorship, meaning the interest of a deceased owner automatically transfers to the surviving joint tenants.

• A corporation is considered an “artificial person” created by law and is designed to have perpetual existence, meaning it does not die in the way a natural person does.

• Since the right of survivorship is triggered by death, a corporation’s perpetual existence conflicts with this fundamental principle of joint tenancy.

• Consequently, corporations are prohibited from holding title to real property in joint tenancy.

• For joint tenancy to be legally valid, it generally must be held by natural persons.

Pages: 1 2 3