Property OwnershipIntermediateCalifornia Exam

In a condominium, what does each owner actually own?

AA share of stock in a corporation that owns the entire building

BAn individual unit from the interior walls inward, plus an undivided interest in the common areasCorrect

COnly the airspace of their unit; no land ownership

DThe land beneath their unit but not the common areas

Why An individual unit from the interior walls inward, plus an undivided interest in the common areas Is Correct

Answer B: An individual unit from the interior walls inward, plus an undivided interest in the common areas

A condominium owner holds fee simple title to their individual unit (typically from the interior surfaces inward) plus an undivided fractional interest in the common areas (lobby, hallways, grounds, etc.) shared with all other 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

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.