Illinois Real Estate Practice Exam

What term describes shared ownership between two parties where one party can sell their interest without consent from the other, as opposed to joint tenants?

1. Purchase Money Mortgage

2. Tenancy In Common

3. Functional Obsolescence

4. External Obsolescence

The correct answer is: Tenancy In Common

The term that describes shared ownership between two parties where one party can sell their interest without needing consent from the other is tenancy in common. In a tenancy in common arrangement, each owner has a distinct share of the property, and these shares can be of unequal size. Each co-owner retains the right to sell, transfer, or will their share without needing the other owner’s permission. This contrasts with joint tenancy, where co-owners have a right of survivorship, meaning that if one owner dies, their share passes to the surviving owner(s) rather than to heirs. The key feature of tenancy in common is the independence of ownership interests, which provides flexibility for each individual owner concerning their share of the property. This autonomy is essential for understanding real estate ownership structures in Illinois and beyond.