Texas Crammer Practice Exam

When two sellers and two buyers enter into a real estate contract that fails to specify the type of ownership, how will the new buyers take title?

1. Joint tenancy

2. Tenants in common

3. Community property

4. Sole ownership

The correct answer is: Tenants in common

When two sellers and two buyers enter into a real estate contract that does not specify the type of ownership, the default method of taking title is tenants in common. This form of ownership allows each buyer to have an individual share of the property, which they can sell or transfer without the consent of the other owner. In a tenants in common arrangement, each party owns a distinct share of the property that does not automatically transfer to the other upon their death. Instead, that share can pass to heirs or be included in the owner’s estate. This flexibility and lack of survivorship rights differentiate tenants in common from joint tenancy, where there is a right of survivorship, meaning if one owner dies, their share automatically goes to the remaining owner(s). The other options, such as community property and sole ownership, do not apply in this scenario since community property typically pertains to married couples and sole ownership refers to ownership by a single individual. Therefore, without specific instructions regarding the type of ownership in the contract, the buyers will default to taking title as tenants in common.