Washington State Managing Broker Practice Exam

The reasoning behind why corporations cannot hold property as joint tenants is grounded in the nature of corporations and how joint tenancy is structured. Joint tenancy is a form of ownership that includes the right of survivorship, meaning that when one co-owner dies, their interest in the property automatically passes to the remaining co-owners.

Corporations, as legal entities, do not die in the way individuals do; they may continue to exist indefinitely, subject to the laws governing them. Since joint tenancy relies on the concept of individual owners dying and transferring their share to the surviving tenants, this concept does not apply to corporations. Consequently, the notion of survivorship becomes irrelevant in the context of corporate ownership. This intrinsic characteristic of corporations leads to the conclusion that they are not suited to hold property as joint tenants.

Therefore, understanding the unique nature of corporate entities and their perpetual existence clarifies why the survivorship feature of joint tenancy does not apply to them.