Hawaii Pre-Licensing National Practice Exam

When a husband and wife take title to a property as tenants in common, what does this ownership form allow for?

1. Only equal shares of ownership

2. Only unequal shares of ownership

3. Equal shares of ownership only if specified

4. Unequal or equal shares of ownership

The correct answer is: Unequal or equal shares of ownership

When a husband and wife take title to a property as tenants in common, this form of ownership allows for unequal or equal shares of ownership. Tenancy in common is characterized by the ability of each co-owner to own a distinct percentage of the property. This means that one spouse can own a larger share, while the other owns a smaller share, or they can choose to own equal shares if they so desire. This flexibility is a significant aspect of tenancy in common, making it distinct from other forms of co-ownership, such as joint tenancy, where equal shares are mandatory. The ability to specify different ownership interests provides co-owners with greater control over their investment, allowing for arrangements that reflect their individual financial contributions or agreements. In summary, tenancy in common permits both equal or unequal sharing of ownership, which is why the correct choice recognizes this dual possibility.