Texas Crammer Practice Exam

If an owner conveys land to two grantees on a one-third, two-thirds basis, how will the new owners take title?

1. Joint tenancy

2. Tenants in common

3. Partnership

4. Community property

The correct answer is: Tenants in common

When an owner conveys land to two grantees on a one-third, two-thirds basis, the correct way the new owners will take title is as tenants in common. This form of ownership allows for multiple owners to hold different percentages of the property, which reflects the specific division of interests as stipulated by the grantor. Each owner has the right to sell, transfer, or otherwise dispose of their share without needing consent from the other owner. Tenants in common is characterized by the ability of each owner to possess the whole property while holding distinct shares, in this case, one-third and two-thirds. This arrangement contrasts with joint tenancy, where each owner has an equal share of the property and the right of survivorship, meaning if one owner dies, their interest automatically passes to the surviving owner(s), rather than to heirs. Partnership typically refers to a business arrangement rather than property ownership among individuals, and community property pertains to a marital property concept where assets acquired during a marriage are owned jointly by both spouses. Thus, since the grantees are taking distinct, unequal shares, they are classified as tenants in common.