Idaho Real Estate Practice Exam

Which of the following terms describes the concept that outlines legal ownership in real estate?

1. Tenancy in Common

2. Deed Restriction

3. Title Insurance

4. Right of Survivorship

The correct answer is: Tenancy in Common

The concept that outlines legal ownership in real estate is termed "Tenancy in Common." This form of property ownership allows two or more individuals to hold title to a property concurrently, meaning that each owner has an undivided interest in the entire property. Unlike other forms of ownership, such as joint tenancy, each tenant in common can own different percentages of the property and can transfer their interests separately. This structure is pivotal because it defines how ownership is shared and what happens in the event of one owner's death or the desire to sell their interest. The other options pertain to different aspects of real estate. Deed restrictions refer to limitations placed on the property by the seller, title insurance protects against losses from disputes over ownership or liens, and the right of survivorship is associated with joint tenancy, where the property automatically passes to surviving owners upon an owner’s death. None of these options fundamentally define ownership itself in the way that tenancy in common does.