Certified Residential Appraiser Practice Exam

What is the primary characteristic of Tenancy in Entirety?

1. Ownership can be sold individually

2. Requires both parties to agree for any sale

3. Ownership is typically for non-married couples

4. Each owner has equal liability

The correct answer is: Requires both parties to agree for any sale

The primary characteristic of Tenancy in Entirety is that it requires both parties to agree for any sale. In this form of ownership, which is specifically available to married couples, both spouses hold the title to the property jointly with equal rights. This means that neither spouse can unilaterally sell or encumber the property without the consent of the other. This characteristic provides a layer of protection for the property from creditors of just one spouse and ensures that both partners are involved in any decisions regarding the property ownership. The other options highlight aspects that do not align with the essential feature of Tenancy in Entirety. For example, ownership being sold individually does not apply because such ownership requires mutual agreement between the spouses. Furthermore, while equal liability might be true in terms of responsibility towards the property, it does not capture the essence of joint ownership without the possibility of individual sale. Notably, this form of ownership is not applicable to non-married couples, reinforcing its specific characteristic of requiring both partners, who are married, to agree on any decisions related to the property.