Property OwnershipIntermediateArizona Exam

In Arizona, common areas in a condominium project are typically owned as:

ASeparate lots by the HOA

BAn undivided interest by all unit owners as tenants in commonCorrect

CFee simple by the developer in perpetuity

DLeasehold interest by the HOA

Why An undivided interest by all unit owners as tenants in common Is Correct

Answer B: An undivided interest by all unit owners as tenants in common

Common areas in a condominium are typically owned by all unit owners collectively as tenants in common, with each unit owner holding an undivided fractional interest in the common elements.

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.

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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.

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.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).