Property OwnershipIntermediateAlabama Exam

Tenancy in common differs from joint tenancy in that tenancy in common:

ARequires equal ownership shares

BDoes not include the right of survivorshipCorrect

CCan only be held by married couples, in general

DAutomatically terminates at death

Why Does not include the right of survivorship Is Correct

Answer B: Does not include the right of survivorship

The key difference is that tenancy in common does not include the right of survivorship. Each tenant in common's interest passes to their heirs upon death, not to the other co-owners.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.

People Also Study

Key Terms to Know

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

Tenancy in Common

Co-ownership where two or more people hold undivided interests that need not be equal and pass to each owner's heirs — no right of survivorship.

Fee Simple

The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.

Discount Points

Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.