Nationwide Mortgage Licensing System (NMLS) Practice Exam

What is a unique aspect of Tenants in Common ownership compared to Joint Tenancy?

1. Equal shares

2. Right of survivorship

3. Ability to will share

4. Buy at different times

The correct answer is: Ability to will share

In Tenants in Common ownership, one of the distinctive features is the ability to will one's share of the property to heirs or designated individuals upon death. This means that each co-owner can control what happens to their portion of the property, allowing them to designate beneficiaries according to their wishes, rather than having it automatically transfer to the other co-owners. This contrasts with Joint Tenancy, which includes the right of survivorship. Under this arrangement, when one co-owner passes away, their share of the property automatically transfers to the surviving co-owners, bypassing the estate process and any designated heirs. While tenants in common can own different percentages of the property and can also acquire their shares at different times, these features do not specifically relate to the unique aspect of estate planning and legacy that choosing to will one's share represents. Therefore, the ability to will a share clearly distinguishes Tenants in Common from Joint Tenancy in terms of ownership structure and control over one's interests after death.