Real Estate Council of Alberta Fundamentals Practice Exam

Which type of ownership allows for different shares among owners?

1. Sole ownership

2. Joint tenancy

3. Tenancy in common

4. Easement ownership

The correct answer is: Tenancy in common

Tenancy in common is the type of ownership that allows for different shares among owners. In a tenancy in common arrangement, each owner holds a distinct share of the property, which may vary in size and value. This means that one owner could have a 50% interest, while another owner might have a 30% interest, and a third could have the remaining 20%. This structure provides flexibility in ownership, allowing individuals to invest different amounts into the property and still retain ownership rights, including the ability to sell or transfer their share independently of the others. Additionally, when one owner passes away, their share is passed on according to their will or the laws of intestacy, rather than automatically transferring to the other owners, which is a key difference from joint tenancy. Other types of ownership do not offer this level of flexibility. Sole ownership involves a single individual holding the full title to the property without sharing it with others. Joint tenancy, meanwhile, requires all owners to have equal shares and rights to the property, with automatic rights of survivorship, meaning if one owner dies, their share passes to the other owner(s). Easement ownership pertains to the right to use another's property for a specific purpose and does not relate to the shared ownership