Which method of holding title is suitable for a husband and wife who want to own 10% and 90% of a property respectively?

Study for the Mortgage Loan Originator National Exam with multiple choice questions and detailed explanations. Get ready to ace your exam!

Tenants in common is the suitable method of holding title when ownership percentages are unequal, such as a husband wanting to own 10% and a wife wanting 90% of a property. This form of co-ownership allows multiple individuals to own different percentages of a property and is not restricted to equal shares. Each party holds a distinct, fractional interest in the property, meaning they can own different amounts and can also sell or transfer their share independently without requiring consent from the other owner.

In contrast, tenants by the entirety is typically exclusive to married couples and mandates equal ownership shares, which would not accommodate the specified different percentages. Joint tenants with unequal shares and joint tenants as husband and wife also stipulate equal shares among owners, which again does not apply here, as it requires each party to have an identical ownership interest. Tenants in common provides the flexibility needed in this scenario for the specified unequal ownership distribution.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy