Question 46

Meg and Jack have a tenancy in common.

In this scenario, Meg and Jack hold their property as tenants in common, which allows each co-owner to have a distinct share of the property that can be inherited separately. Meg’s 60% ownership being passed to her spouse upon her death illustrates that her share does not automatically transfer to Jack.

A) ownership in severalty

Ownership in severalty refers to property owned by a single individual without any co-owners. This option is incorrect because both Meg and Jack jointly own the property, thus indicating that it is not held in severalty.

B) tenancy by the entirety

Tenancy by the entirety is a form of joint ownership that is typically available only to married couples, where each spouse has an equal and undivided interest in the property, and rights of survivorship apply. This option is incorrect because Meg's ownership interest is inherited by her spouse, not Jack, which is contrary to the nature of tenancy by the entirety.

C) tenancy in common

Tenancy in common allows for co-ownership where each owner has a distinct share of the property that can be inherited independently. This option is correct as evidenced by Meg owning 60% of the property and her share passing to her spouse upon her death, rather than to Jack.

D) joint tenancy

Joint tenancy includes the right of survivorship, meaning that if one owner dies, their share automatically goes to the surviving owner. This option is incorrect because Meg’s share does not transfer to Jack upon her death, indicating that they do not have joint tenancy.

Conclusion

The correct answer is tenancy in common, as it accurately reflects the ownership structure where Meg and Jack have distinct shares that can be inherited separately. All other options fail to account for the inheritance rights that result from Meg's death, which is a defining characteristic of tenancy in common.