What type of ownership allows for shared use but restricts rights of transfer?

What type of ownership allows for shared use but restricts rights of transfer?

• A. Joint tenancy
• B. Tenancy in common
• C. Leasehold
• D. Limited partnership

Answer: (B)

The type of ownership that allows for shared use but restricts rights of transfer is tenancy in common. This form of ownership permits two or more people to own a property together, where each person holds an individual, undivided interest in the property. A key characteristic of tenancy in common is that each co-owner can transfer their share, but they cannot alter the ownership interests of the other co-owners without their consent. This means that while they share the use of the property, their rights to sell or transfer ownership of their respective shares are limited compared to other ownership forms, such as joint tenancy, where the right of survivorship allows for transfer upon the death of an owner. In contrast, joint tenancy involves ownership by two or more people with the right of survivorship, meaning if one owner dies, their interest automatically passes to the surviving co-owners. Leasehold refers to the rights granted to a tenant to occupy and use a property for a specified term, which does not constitute ownership and often does not provide shared ownership with others. A limited partnership involves partners who are not involved in day-to-day operations and do not share ownership of a physical property in the same way as tenants in common.

The type of ownership that allows for shared use but restricts rights of transfer is tenancy in common. This form of ownership permits two or more people to own a property together, where each person holds an individual, undivided interest in the property. A key characteristic of tenancy in common is that each co-owner can transfer their share, but they cannot alter the ownership interests of the other co-owners without their consent. This means that while they share the use of the property, their rights to sell or transfer ownership of their respective shares are limited compared to other ownership forms, such as joint tenancy, where the right of survivorship allows for transfer upon the death of an owner.

In contrast, joint tenancy involves ownership by two or more people with the right of survivorship, meaning if one owner dies, their interest automatically passes to the surviving co-owners. Leasehold refers to the rights granted to a tenant to occupy and use a property for a specified term, which does not constitute ownership and often does not provide shared ownership with others. A limited partnership involves partners who are not involved in day-to-day operations and do not share ownership of a physical property in the same way as tenants in common.