Property Rights & Ownership

Community Property

In community property states, most property acquired during marriage is owned equally by both spouses, regardless of who paid for it.

Full Definition

Community property is a form of marital co-ownership recognized in nine states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Property acquired during the marriage (with marital funds) is presumed to be community property — owned equally by both spouses, regardless of whose name is on the title or who earned the income. Separate property (owned before marriage, or received by gift or inheritance during marriage) is not community property. Both spouses must sign any document conveying or encumbering community real property — this is a major exam concept. Upon death, each spouse can only will away their half of community property. Upon divorce, community property is generally divided equally.

Real-World Example

A California couple buys a home during their marriage. Even if only the husband's name is on the deed, the wife owns half as community property. Both must sign the deed if the property is sold.

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How Community Property Appears on the Real Estate Exam

Common question types, tested concepts, and what to watch out for

Know the 9 community property states. Both spouses must sign deeds and mortgages on community real property. Separate property (pre-marriage, gifts, inheritance) is excluded. This is heavily tested in community property states' exams.

Related Terms

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.
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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.
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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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Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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More Property Rights & Ownership Terms

Fee SimpleJoint TenancyTenancy in CommonLife EstateView all →

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See Community Property on a Real Exam Question

Practice tests use real exam-style questions covering community property and other key concepts tested in all 50 states.

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