Real Estate Council of Alberta Fundamentals Practice Exam

What is a characteristic of sole ownership in real estate?

1. It involves multiple co-owners sharing equal interest

2. It allows for different shares among owners

3. It is held by one individual or company

4. It requires a common interest type among owners

The correct answer is: It is held by one individual or company

The characteristic of sole ownership in real estate is that it is held by one individual or company. This means that the owner has complete control over the property and is solely responsible for it, including obligations like maintenance, property taxes, and any decisions related to the property. Sole ownership provides the owner with clear authority over the property, allowing them to make unilateral decisions regarding its use, sale, or modification without needing to consult with others. In contrast to sole ownership, multiple co-owners sharing equal interest would fall under forms of joint ownership such as tenancy in common or joint tenancy, where rights and responsibilities are distributed among several parties. Ownership with different shares among owners indicates a partnership or shared investment rather than sole ownership, leading to complexities in decision-making and benefits. Lastly, requiring a common interest type among owners is a principle of collective ownership structures that does not pertain to sole ownership. Thus, identifying that sole ownership is characterized by singular ownership leads to a clear understanding of its defining feature.