Certified Residential Appraiser Practice Exam

Which ownership structure is specific to married couples?

1. Sole Proprietorship

2. General Partnership

3. Tenancy in Entirety

4. Tenant in Common

The correct answer is: Tenancy in Entirety

The ownership structure that is specific to married couples is "Tenancy in Entirety." This form of ownership is unique because it was designed specifically for married partners, allowing them to jointly own property as a single legal entity. In this arrangement, both spouses have equal rights to the property, and neither can transfer their interest without the other's consent. One of the main advantages of Tenancy in Entirety is the protection it offers against creditors. If one spouse encounters legal or financial difficulties, creditors cannot claim the property owned as Tenancy in Entirety, ensuring that both spouses' interests in the property are safeguarded. In contrast, Sole Proprietorship refers to a business owned and operated by a single individual, and is not applicable to married couples as a specific ownership structure. A General Partnership involves two or more individuals sharing ownership and responsibilities in a business, which may include married couples but is not exclusive to them. Tenant in Common allows multiple individuals to own a property together, without the restriction that it must be between spouses, allowing for unequal shares and the possibility of transferring ownership without the other owner’s consent. Thus, Tenancy in Entirety stands out as the distinctive structure designed explicitly for married couples.