California Real Estate Practice Exam 2025 – The All-in-One Resource to Ace Your Licensing Exam!

In California, if a grant deed does not specify how two grantees are to hold title, the law defaults to interpreting the title as being held as tenants in common. However, it is important to note that the answer provided indicates community property, which applies specifically to couples who are married.

Under the presumption of community property, if title is taken in the names of both spouses, it is assumed to be community property unless stated otherwise. For unmarried couples or unrelated parties named on the deed, the default would typically be tenants in common, allowing each party to have an undivided interest in the property. Therefore, in the absence of clear language in a grant deed, courts primarily recognize the intent to establish a common ownership model, which is why understanding the default holding of title types is crucial for real estate transactions in California.

The question emphasizes the importance of indicating the manner of taking title on the grant deed to avoid ambiguity and ensure that the interests of all parties are clearly defined.