Question
nnnnA corporation is prohibited from holding title to real property in California with anyone as a joint tenant because:
nnnnSelections
nnnnA. It is a violation of the Securities Act
nnnnB. Of its perpetual existence
nnnnC. It is difficult to list all stockholders in the deed
nnnnD. A corporation cannot hold title to real property
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Answer: B
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5 Keys Summary
nnnn• Joint tenancy is primarily characterized by the right of survivorship, meaning the interest of a deceased owner automatically transfers to the surviving joint tenants.
nnnn• 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.
nnnn• Since the right of survivorship is triggered by death, a corporation’s perpetual existence conflicts with this fundamental principle of joint tenancy.
nnnn• Consequently, corporations are prohibited from holding title to real property in joint tenancy.
nnnn• For joint tenancy to be legally valid, it generally must be held by natural persons.
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