Maryland Home Improvement PSI Practice Exam

The main difference between tenancy in common and joint tenancy is that with tenancy in common, when a co-owner dies, _____________?

1. His undivided interest passes to his heirs.

2. The last surviving owner holds title in severalty.

3. His undivided interest passes to the surviving co-owners.

4. The principle of the right to survivorship determines the rights of the surviving co-owners.

The correct answer is: His undivided interest passes to his heirs.

In tenancy in common, when a co-owner dies, their undivided interest in the property passes to their heirs, rather than to the surviving co-owners. This means that the deceased co-owner's share does not automatically transfer to the other co-owners as it would in joint tenancy, where there is a right of survivorship. This characteristic of tenancy in common allows for greater flexibility in estate planning, as individuals can decide to leave their share to anyone they wish, rather than being limited to the remaining co-owners. In joint tenancy, the right of survivorship is a key feature that means when one owner dies, their interest in the property automatically transfers to the remaining co-owners. Thus, the correct choice emphasizes the way that ownership interests are inherited in tenancy in common, distinguishing it clearly from joint tenancy arrangements. This distinction is crucial for anyone involved in real estate transactions, as it affects how property is managed and passed on upon an owner's death.