Certified Residential Appraiser Practice Exam

Which term refers to the joint ownership of property where the interest automatically passes to surviving owners upon death?

1. Tenancy in Entirety

2. Tenant in Common

3. Joint Tenancy

4. Condominium Ownership

The correct answer is: Joint Tenancy

The term that refers to the joint ownership of property where the interest automatically passes to surviving owners upon death is commonly known as Joint Tenancy. This form of ownership includes a characteristic called the right of survivorship, which means that when one joint tenant dies, their share of the property is transferred to the remaining joint tenants. This feature distinguishes joint tenancy from other ownership structures. In Joint Tenancy, all parties have equal rights and responsibilities concerning the property, and they must acquire their ownership interests simultaneously and through the same deed or document. This form of ownership is significant because it simplifies the transfer of property upon death, allowing for a smooth transition without the need for probate. The other options represent different forms of property ownership. Tenancy in Entirety is specifically for married couples and also includes a right of survivorship, but it applies only to spouses. Tenant in Common allows for shared ownership without the right of survivorship; if one owner dies, their share can be passed down to heirs, rather than automatically going to the other owners. Condominium ownership refers to a type of property where individuals own individual units but share ownership of common areas, which does not relate to the automatic transfer of rights upon death.