Real Estate Appraisal Practice Exam

If Mega Corporation owns real property, chances are it owns it in ______.

1. Joint tenancy

2. Severalty

3. Partnership

4. Tenancy in common

The correct answer is: Severalty

Mega Corporation is likely to own real property in severalty, which means that the property is held exclusively in the name of that corporation, without any shared ownership with others. This form of ownership is typical for corporations, as it allows for streamlined decision-making and management of the property. When a corporation owns property in severalty, it can represent its own interests fully and is subject to the specific laws and regulations that apply to corporate entities, including liability protections and tax considerations. In contrast, joint tenancy, partnership, and tenancy in common involve shared ownership, which is less common for a corporation. Joint tenancy requires equal ownership interests and the right of survivorship, which does not align well with corporate ownership structures. Partnerships involve two or more individuals or entities managing property together, which again operates differently than how a corporation typically manages its assets. Tenancy in common allows for ownership shares that can be unequal and allows for individual interests to be sold or transferred without the consent of the other owners, which could complicate corporate governance.