Which type of ownership allows for the transfer of interest to outside parties, changing the ownership structure?

Prepare for the Minnesota Real Estate Salesperson Exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

Tenancy in common is the correct choice because it allows for individual ownership interests that can be sold or transferred to third parties without the consent of the other co-owners. Each tenant in common holds a separate and distinct share of the property, and these shares can vary in size. When a tenant in common decides to sell or transfer their interest, they can do so freely, which can lead to changes in the ownership structure of the property.

In contrast, joint tenancy has the right of survivorship, meaning that when one owner passes away, their interest automatically transfers to the surviving owner(s) rather than being able to be sold or transferred to an outside party. Community property typically refers to property acquired during marriage and does not allow for individual transfer without the consent of the spouse. Lastly, tenants by the entirety is a form of joint ownership available only to married couples, which also includes the right of survivorship and an inability to transfer interest without mutual consent.

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