Texas Real Estate State Practice Exam

Which ownership structure allows rights of survivorship, ensuring that the property passes to other owners upon one's death?

1. Joint Tenancy

2. Trust

3. Tenancy in Common

4. Life Estate

The correct answer is: Joint Tenancy

The ownership structure that allows rights of survivorship is Joint Tenancy. In Joint Tenancy, all owners hold an equal share of the property, and one of the distinguishing features is the right of survivorship. This means that when one joint tenant passes away, their share of the property automatically transfers to the remaining joint tenants, rather than becoming part of the deceased’s estate and being distributed according to their will or state probate laws. This characteristic makes Joint Tenancy a favored option for individuals seeking to ensure that their property seamlessly passes to co-owners without the need for legal intervention or probate. This contrasts with other ownership structures: Trusts can specify conditions for property transfer but do not inherently provide the right of survivorship unless specifically structured to do so. Tenancy in Common allows for ownership shares to be unequal and does not include a right of survivorship, meaning that upon death, an owner's share can be inherited by heirs. A Life Estate grants rights to use the property during one's lifetime, but does not offer rights of survivorship in the way Joint Tenancy does.