Property OwnershipIntermediateNorth Carolina Exam

In North Carolina, a condominium owner owns:

AThe land beneath their unit

BTheir individual unit in fee simple and an undivided interest in common areasCorrect

COnly an air rights interest

DA leasehold interest in the unit, which most practitioners would generally accept

Why Their individual unit in fee simple and an undivided interest in common areas Is Correct

Answer B: Their individual unit in fee simple and an undivided interest in common areas

Condominium owners hold fee simple ownership of their individual unit and an undivided percentage interest in the common elements of the condominium.

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.

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.

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.