Illinois Real Estate Practice Exam

When a husband, wife, and wife's mother buy a home together, what action should the licensee recommend regarding the title?

1. They take title as joint tenants

2. They take title as tenants in common

3. They consult their attorney

4. They consult a real estate agent

The correct answer is: They consult their attorney

The correct recommendation is for the parties to consult their attorney. In a situation where multiple individuals, especially family members, are purchasing property together, there are various legal implications and ownership structures to consider. An attorney can provide expert advice on how to best hold the title to reflect their intentions, protect their interests, and ensure that any estate planning needs are adequately addressed. Options such as taking title as joint tenants or tenants in common represent different forms of ownership that have specific legal consequences. While these options are valid, they may not adequately reflect the unique dynamics of a relationship involving a husband, wife, and mother. Only an attorney can appropriately guide them based on their specific circumstances, such as how they want the property to be transferred in the event of death or divorce. Consulting a real estate agent, although beneficial for identifying properties and negotiating terms, is not the best course of action for determining ownership structures and legal implications of property title. An agent typically doesn't possess the legal expertise required to provide definitive guidance on these matters.