a. Facts-
Husband and wife purchased property together as joint tenants. Upon learning
that husband will get whole property upon her death, wife sees a lawyer and
wants to sever the joint tenancy and convert it to a tenancy in common so she
can devise the property to her heirs. The lawyer prepared a grant deed which
conveyed her interest in joint tenancy to herself in tenancy in common. Trial
Ct found that this method did NOT terminate the joint tenancy, executrix of the
wife’s will appeals
b. Procedural
History- Trial Ct finds for Δ in that joint tenancy was NOT destroyed, Π
appeals, Cal Ct of appeals reverses
c. Issue-
Whether conveying your interest in joint tenancy to yourself in tenancy in
common is enough to terminate a joint tenancy
d. Holding-
Yes, conveying your own interest in joint tenancy to yourself in tenancy in common
is enough to terminate a joint tenancy
e. Rule-
One joint tenant may unilaterally sever the joint tenancy without the use of an
intermediary device
f. Rationale-
i.
Prior to this case, joint tenants would
terminate the joint tenancy by conveying their interests in tenancy in common
to a third-party, or “straw man”.
ii.
The Ct reasons that “a joint tenant SHOULD
be able to accomplish directly what he or she could otherwise achieve
indirectly by use of elaborate legal fictions”
iii.
The rule of using a “straw man” is
archaic and should be done away with
iv.
A joint tenant has the power/right to
convey their interests to another, and if that other is themselves, then so be
it
g. Notes-
i.
You already have the power to destroy a
joint tenancy by conveying interest to a 3rd party, the Ct is not
creating a “new” power…but making it easier to exercise a current power
ii.
There might be some reasons why we still
would need a “straw man”
1. Recording
a deed is NOT necessary for validity of the deed
iii.
“O to A, B, and C as joint tenants”. A
then conveys his interest to D.
1. The
whole joint tenancy is NOT broken…B and C are still joint tenants…D is a tenant
in common with B and C (joint tenants).
No comments:
Post a Comment