Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following correctly differentiates between joint tenancy and tenants in common?

1. Tenants in common own distinct shares, which can be unequal and can be sold or inherited separately.

2. Joint tenants must have equal ownership shares and the right of survivorship applies.

3. In tenants in common, upon death, the deceased’s share passes to their heirs or as per their will.

4. Joint tenancy creates an undivided ownership interest, while tenants in common allows divided interests.

5. Tenants in common requires all owners to sign off on property decisions.

6. Both tenancy types automatically transfer ownership to the other owners upon death.

The correct answer is: Joint tenants must have equal ownership shares and the right of survivorship applies.

The correct distinction between joint tenancy and tenants in common is that joint tenants must have equal ownership shares, and the right of survivorship applies, meaning that upon the death of one tenant, their share automatically passes to the surviving joint tenants rather than to their heirs. This concept is crucial in understanding property rights and transfers among co-owners. Joint tenancy creates a unified ownership structure where all owners share an equal interest in the whole property, reinforcing the idea of collective ownership. The right of survivorship is a critical feature that differentiates it from tenants in common, where such automatic transfer does not occur. While tenants in common may own unequal shares and can bequeath their interests to heirs, joint tenancy's equal sharing and survivorship provisions underscore a significant legal distinction between the two. Understanding this difference is essential for navigating property ownership and estate considerations.