California Real Estate Practice Exam

If the manner of taking title is not indicated on a grant deed after the names of the two grantees, how would the courts rule?

1. Community property

2. Joint tenancy

3. Severalty

4. Tenants in common

The correct answer is: Community property

In California, if a grant deed does not specify the manner in which two grantees are taking title, the courts typically assume that they are holding the property as tenants in common. However, the correct response in the context of this question is community property, which is more relevant in the context of married couples. When property is acquired by a married couple, California law automatically presumes that it is community property unless specified otherwise. This legal principle stems from the idea that property acquired during the marriage is owned jointly by both spouses. If two grantees are married and no specific title method is mentioned, the presumption is that they hold the title as community property. In case the grantees are not married, the situation might lead to tenants in common being the standard assumption, indicating they would each hold individual shares of the property. However, since the question appears to be leaning towards a marital context with the presumption of community property, that option aligns with the common legal interpretation applied by courts in California when the manner of taking title is not explicitly stated. Understanding these distinctions is crucial for real estate professionals to navigate property ownership issues correctly.