Texas Real Estate State Practice Exam

Which ownership type involves two or more individuals without rights of survivorship?

1. Joint Tenancy

2. Tenancy in Common

3. Trust

4. Estate in Severalty

The correct answer is: Tenancy in Common

The ownership type that involves two or more individuals without rights of survivorship is Tenancy in Common. This form of co-ownership allows each owner to hold a separate and distinct share of the property, which does not automatically transfer to the other owners upon the death of one owner. Instead, the deceased owner’s share can be passed on according to their will or state laws of intestacy. In contrast, Joint Tenancy includes a right of survivorship, meaning that when one owner dies, their share automatically passes to the surviving co-owners. A Trust is a legal arrangement where a trustee holds property for the benefit of another party, and it doesn’t specifically pertain to the type of ownership being asked about. Estate in Severalty, on the other hand, refers to ownership by a single individual, which also does not fit the requirement of having two or more individuals involved. Thus, Tenancy in Common is the correct answer, as it specifically allows for multiple owners without the automatic transfer of ownership upon the death of one of the owners.