Oregon 30-Hour Real Estate Law Practice Test

When a property is owned by multiple people equally, this ownership type is known as:

1. Tenancy at sufferance

2. Joint tenancy

3. Tenancy in common

4. Estates by entirety

The correct answer is: Tenancy in common

When multiple people share ownership of a property equally, the ownership type referred to is known as tenancy in common. In this arrangement, each owner holds an individual, undivided interest in the property, which means that they all have the right to use and enjoy the entire property, not just a specific portion of it. One key characteristic of tenancy in common is that each owner has the flexibility to pass their share of the property to heirs, sell it, or encumber it without needing the consent of the other owners. This structure contrasts with joint tenancy, where owners share equal ownership but are also connected by rights of survivorship, meaning that upon the death of one owner, their interest automatically transfers to the surviving owners. In addition, while "tenancy at sufferance" refers to a situation where a tenant remains in possession of a property after their lease has expired without the landlord's consent, and "estates by entirety" is a form of joint ownership specifically for married couples, these definitions do not apply to the scenario described in the question. Consequently, tenancy in common is the accurate term for multiple people owning a property equally.