Property OwnershipIntermediateAlabama Exam

A survivorship deed in Alabama, often used by married couples, ensures that:

AThe property is automatically left to the children upon death, under standard practice

BUpon the death of one owner, the property passes automatically to the surviving ownerCorrect

CThe estate pays reduced taxes on the property

DThe property avoids state inheritance taxes

Why Upon the death of one owner, the property passes automatically to the surviving owner Is Correct

Answer B: Upon the death of one owner, the property passes automatically to the surviving owner

A survivorship deed (creating a joint tenancy or tenancy by the entirety) ensures the surviving co-owner automatically takes full title upon the death of the other owner, avoiding probate.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

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Key Terms to Know

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.