Idaho Real Estate Practice Exam

What type of ownership interest allows heirs to inherit property directly?

1. Joint tenancy

2. Tenancy in common

3. Life estate

4. Community property

The correct answer is: Tenancy in common

The correct answer is that tenancy in common allows heirs to inherit property directly. In a tenancy in common, each co-owner holds an individual share of the property that can be passed on to their heirs upon their death. This means that if one owner dies, their interest in the property is inherited by their designated heirs according to their will or, if there's no will, according to the state’s laws of intestate succession. In contrast, joint tenancy includes the right of survivorship, meaning that when one joint tenant passes away, their share automatically transfers to the surviving joint tenants and does not go to their heirs. This makes joint tenancy unsuitable for those who want their interest to be inherited by their heirs directly. A life estate gives an individual the right to use a property during their lifetime, but when they pass away, the property reverts to the original grantor or a third party, rather than passing to their heirs. Community property refers to a marital property system where both spouses have equal ownership of property acquired during the marriage, and while it does provide rights to heirs, the nature of that ownership is geared towards the spouses rather than direct inheritance by individual heirs. Thus, in the context of inheritance and direct transfer of ownership, tenancy in common is