Humber/Ontario Real Estate Course 1 Exam Practice

How does the Right of Survivorship differ from Tenants in Common?

1. Survivorship applies to land leases

2. Survivorship allows interests to pass directly to the joint tenant

3. Tenants in Common always require probate

4. Tenants in Common are similar under Canadian law

5. Tenants in Common automatically include survivorship rights

6. Survivorship permits transfer to anyone

The correct answer is: Survivorship allows interests to pass directly to the joint tenant

The choice indicating that survivorship allows interests to pass directly to the joint tenant is indeed the correct understanding of the Right of Survivorship. This principle generally operates under joint tenancy, where, upon the death of one joint tenant, their share automatically transfers to the surviving joint tenant(s) without the need for probate. This direct transfer of interest is a fundamental characteristic that distinguishes joint tenancy from tenancy in common, where the deceased’s share typically goes through probate before being passed on to beneficiaries. The other options present various misunderstandings about tenancy arrangements. For instance, while tenants in common may indeed require probate, it is not an absolute requirement for all cases, as different estate planning approaches could influence this. Additionally, it is important to clarify that tenants in common do not automatically include survivorship rights; this is a defining feature of joint tenancy. Understanding these key differences is vital when navigating the complexities of real estate ownership arrangements in Ontario.