(a)
A revocable transfer on death deed transfers all of the transferor’s interest in the property on the transferor’s death according to the following rules:
(1)
Subject to the beneficiary’s right to disclaim the transfer, the interest in the property is transferred to the beneficiary in accordance with the deed.
(2)
The interest of a beneficiary is contingent on the beneficiary surviving the transferor. Notwithstanding Section 21110, the interest of a beneficiary that fails to survive the transferor lapses.
(3)
Except as provided in paragraph (4), if there is more than one beneficiary, they take the property as tenants in common, in equal
shares.
(4)
If there is more than one beneficiary, the share of a beneficiary that lapses or fails for any reason is transferred to the others in equal shares.
(b)
Property is transferred by a revocable transfer on death deed subject to any limitation on the transferor’s interest that is of record at the transferor’s death or that is recorded no later than 120 days after the affidavit required by subdivision (c) of Section 5682 is recorded, including, but not limited to, a lien, encumbrance, easement, lease, or other instrument affecting the transferor’s interest, whether recorded before or after recordation of the revocable transfer on death deed. The holder of rights under that instrument may enforce those rights against the property notwithstanding its transfer by the revocable transfer on death deed. An enforceable restriction on the use of the transferred property does not
affect the transfer of title to the property by a revocable transfer on death deed.
(c)
Notwithstanding subdivision (b), an interest in a stock cooperative is transferred by a revocable transfer on death deed subject to any limitation on the transferor’s interest that is expressed in the governing documents of the stock cooperative or in a written agreement between the stock cooperative and the transferor, without regard for whether or not those instruments are recorded.
(d)
If a stock cooperative exercises an option to purchase property transferred by a revocable transfer on death deed on the transferor’s death, the result is as follows:
(1)
The property is transferred to the stock cooperative rather than the beneficiary.
(2)
The purchase price is paid
to the beneficiary. Unless the law or the governing documents of the stock cooperative provide otherwise, the purchase price is the fair market value of the property, less the amount of any liens or encumbrances on the property at the time of the owner’s death and less any amount that the decedent owed to the stock cooperative.
(e)
A revocable transfer on death deed transfers the property without covenant or warranty of title.
