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National curriculum lesson · Property Ownership

Sole, Co-Ownership, Common-Interest, Trust, Entity, and Life Estates

PSI tests ownership in severalty, tenancy in common, joint tenancy, common-interest ownership, trusts, estates, business entities, and life estates. The questions that matter are who holds title, whether shares and possession are divided, whether survivorship exists, and who receives the property when a present interest ends.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is the exam-ready answer?

PSI tests ownership in severalty, tenancy in common, joint tenancy, common-interest ownership, trusts, estates, business entities, and life estates. The questions that matter are who holds title, whether shares and possession are divided, whether survivorship exists, and who receives the property when a present interest ends.
Official syllabus mapping for Sole, Co-Ownership, Common-Interest, Trust, Entity, and Life Estates
Official syllabus topicSole, Co-Ownership, Common-Interest, Trust, Entity, and Life Estates
Official PSI areaProperty Ownership
Published area weight10% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

The lesson

These ideas work together. On the exam, the wrong answers usually describe a nearby concept, so learn where each one stops.

Severalty and co-ownership

Severalty means one legal owner, even if that owner is an entity. Tenants in common hold undivided interests with no automatic survivorship and may own unequal shares.

Joint tenancy

Joint tenancy includes survivorship when validly created. Severance of one interest can change the form as to that share under applicable law.

Common-interest forms

A condominium owner holds a unit plus an undivided common interest. A cooperative resident usually owns shares and receives a proprietary lease. Timeshare rights divide occupancy by time or points.

Trusts and entities

A trustee holds legal title under the trust terms. Corporations, partnerships, and limited liability companies can hold title as separate legal owners.

Life estates

A life tenant holds a present interest measured by a life. A remainderman receives the future interest from the creating instrument; a reversion returns to the grantor or the grantor's estate.

Decision rule

Read the deed or creating instrument for owner names, shares, survivorship language, and the future-interest holder.

Georgia-specific distinction

In Georgia, an instrument naming two or more owners creates interests in common without survivorship unless it expressly uses joint-tenancy or survivorship language. Do not infer survivorship from marriage or shared possession alone.

Worked example

Scenario. A deed grants property to Dana for life, then to Lee. Dana dies.

Reason it through. Dana held the present life estate. Lee was named to receive the property after the measuring life ended.

Answer. Lee holds the remainder and becomes entitled to possession at Dana's death.

Common exam traps

  • Calling entity ownership co-ownership automatically
  • Assuming tenants in common have survivorship
  • Confusing cooperative shares with condominium title
  • Calling every future interest a reversion

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

A Georgia deed conveys a house to Maria Diaz and Ben Diaz, a married couple, with no other language. Ben dies. What happens to Ben's interest?

  1. A. It passes to Maria by right of survivorship
  2. B. It passes to Maria as tenant by the entirety
  3. C. It passes through Ben's estate as a tenancy in common
  4. D. It reverts to the original grantor
Show answer and explanation →

Answer: C. It passes through Ben's estate as a tenancy in common

In Georgia, a deed to two or more people creates a tenancy in common unless it expressly uses joint tenancy or survivorship language, and Georgia does not recognize tenancy by the entirety. Survivorship is the trap, because many candidates assume marriage creates it.

Question 2

A grant reads 'to Alex for life, then to Jordan.' When Alex dies, who is entitled to the property, and by what interest?

  1. A. Jordan, as remainderman
  2. B. The grantor, by reversion
  3. C. Alex's heirs, by inheritance
  4. D. Jordan and Alex's heirs, in common
Show answer and explanation →

Answer: A. Jordan, as remainderman

A remainder is a future interest the creating instrument gives to a third party, so Jordan takes possession when the life estate ends. Reversion is the wrong choice, but it applies only when the property returns to the grantor.

Question 3

What does a buyer of a cooperative unit usually receive?

  1. A. Title to the unit plus an undivided common interest
  2. B. Shares in the entity and a proprietary lease
  3. C. A deed to the unit held in severalty
  4. D. A fixed week of occupancy each year
Show answer and explanation →

Answer: B. Shares in the entity and a proprietary lease

A cooperative resident usually owns shares in the entity that owns the building and holds a proprietary lease to the unit. Unit title plus a common interest describes a condominium, which is the usual mix-up.

Ready to move on?

You are ready for the next lesson when all of these are true.

  • Explain Sole, Co-Ownership, Common-Interest, Trust, Entity, and Life Estates in one clear answer without notes.
  • Separate Severalty and co-ownership from Joint tenancy using a fresh example.
  • Apply the decision rule to a new fact pattern and name the fact that controls the result.
  • State the Georgia-specific point or explain why the national rule applies unchanged.
  • Answer every practice question and explain the rule each rejected option misapplies.
  • Revisit this topic later in mixed practice without category labels.

Recommended next lesson

Continue with Government Rights in Land: PETE. Government Rights in Land: PETE turns from how private owners hold title to the four government powers that every owner's title remains subject to, including escheat when an owner dies with no valid will and no heirs.

Return to the Property Ownership hub to see every official branch and the complete lesson sequence for this content area.

Sole, Co-Ownership, Common-Interest, Trust, Entity, and Life Estates questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

Is Sole, Co-Ownership, Common-Interest, Trust, Entity, and Life Estates on the Georgia real estate exam?

Yes. It belongs to PSI's Property Ownership content area, which is 10% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Sole, Co-Ownership, Common-Interest, Trust, Entity, and Life Estates?

Read the deed or creating instrument for owner names, shares, survivorship language, and the future-interest holder.

What Georgia-specific distinction should I remember?

In Georgia, an instrument naming two or more owners creates interests in common without survivorship unless it expressly uses joint-tenancy or survivorship language. Do not infer survivorship from marriage or shared possession alone.