Ownership, Estates, and Interests in Land
This domain tests estates in land, concurrent ownership, and future interests. North Carolina questions often hinge on the exact words of conveyance and on which co-tenancy carries survivorship.
Core rules
- Fee simple absolute is the largest estate. A life estate ends at death or at another person's death (pur autre vie), then passes to a remainder or back to the grantor by reversion.
- Tenancy in common gives separate undivided shares with no survivorship; each co-tenant may convey or encumber their share. Joint tenancy with right of survivorship requires unity of time, title, interest, and possession, plus express survivorship language in North Carolina. Tenancy by the entirety is available to married couples.
- A joint tenant's conveyance of their share severs the joint tenancy as to that share and creates a tenancy in common with the remaining joint tenants.
- A condominium combines unit ownership with an undivided interest in common elements. A planned community uses an owners association and covenants. Timeshare interests may be estate or use rights.
Worked example
A, B, and C take title as joint tenants with right of survivorship. A deeds her interest to D. The conveyance severs the joint tenancy as to A's share. B and C remain joint tenants with survivorship between them, while D holds as tenant in common with B and C. If B dies, C takes B's share by survivorship; D keeps A's share.
Traps that cost marks
Assuming all co-ownership carries survivorship; overlooking that a life estate with no remainder leaves a reversion in the grantor; confusing tenancy by the entirety with joint tenancy; and forgetting that a deed to two people without survivorship language is generally a tenancy in common in North Carolina.