California Real Estate Practice Exam

Five people hold undivided interest as tenants in common. Which statement is always true?

1. Each acquired their interest at the same time

2. Each cannot identify their respective part of the property

3. Each has an equal interest

4. Each has an unequal interest

The correct answer is: Each acquired their interest at the same time

The most accurate statement regarding tenants in common is that each has an unequal interest. In a tenancy in common, it is common for the co-owners to have different percentages of ownership. This allows for flexibility in how the property is owned, meaning one co-owner could own 50%, while another owns 25%, and another 25%, for example. The other statements are not universally true. For instance, tenants in common do not need to acquire their interests at the same time. It is also not correct to say that each cannot identify their respective part of the property; rather, they can identify their interests in the property, albeit not as defined physical portions within the property. Recognizing these nuances helps clarify the nature of tenancy in common arrangements, where the central characteristic is that co-owners can hold different ownership shares rather than having to be equal or acquired simultaneously.