Oregon 30-Hour Real Estate Law Practice Test

What does the term "estate in severalty" refer to?

1. Shared ownership among multiple parties

2. Exclusive ownership by one individual

3. A trust managed by a trustee

4. A type of lease agreement

The correct answer is: Exclusive ownership by one individual

The term "estate in severalty" specifically pertains to the exclusive ownership of property by a single individual. In this form of ownership, the owner has complete control over the property and can make decisions regarding its use, management, and disposition without needing consent from any co-owners. This form of ownership often contrasts with shared ownership arrangements, where multiple parties hold an interest in the property. In contrast to the other options, shared ownership involves multiple individuals having rights to the same property, which is not consistent with the concept of severalty. A trust managed by a trustee involves the legal title being held by the trustee for the benefit of another, which also differs from individual exclusive ownership. Similarly, a lease agreement pertains to a rental arrangement where one party pays another for the use of property, which again does not align with the singular ownership aspect defined by severalty. Therefore, "estate in severalty" is accurately captured by the notion of exclusive ownership by one individual, emphasizing their personal, undivided interest in the property.