Property OwnershipIntermediateArizona Exam

A condominium owner in Arizona owns:

AA proportional share in the cooperative corporation that holds fee simple title to the entire building, along with a proprietary lease for the occupancy of their specific unit

BThe airspace within their unit and an undivided interest in common areasCorrect

COnly a leasehold interest in the airspace of their unit that terminates at the end of the condominium association's underlying land lease or upon dissolution of the association

DFee simple ownership of the land beneath their specific unit and the airspace above it, with the common areas owned collectively by all unit owners as tenants in common

Why The airspace within their unit and an undivided interest in common areas Is Correct

Answer B: The airspace within their unit and an undivided interest in common areas

A condominium owner holds fee simple title to the airspace within their individual unit and an undivided interest (as a tenant in common) in the common areas of the condominium project.

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

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.

People Also Study

Key Terms to Know

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.

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.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

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.