Wisconsin Real Estate Sales Practice Exam

What type of ownership offers the right of survivorship?

1. Joint tenancy

2. Tenancy in common

3. Severalty

4. Cooperative

The correct answer is: Joint tenancy

Joint tenancy is a type of ownership that includes the right of survivorship, which means that when one co-owner dies, their share of the property automatically transfers to the surviving co-owners, rather than being passed on to the deceased's heirs. This characteristic makes joint tenancy a preferred option for individuals who want to ensure that their share of the property will not be subjected to probate and will directly benefit the remaining owners. In contrast, tenancy in common does not include the right of survivorship; each co-owner can pass their share to heirs or beneficiaries, which can lead to complications when one owner dies. Severalty refers to ownership by a single individual, so the concept of joint ownership and the right of survivorship does not apply. In a cooperative, residents own shares in a corporation that owns the property, and again, the concept of joint tenancy and its associated rights do not apply in the same way. Thus, joint tenancy is distinctly characterized by the right of survivorship.