What describes co-ownership in which each party's interest passes to their heirs upon death?

The correct answer is that the form of co-ownership where each party's interest passes to their heirs upon death is known as Tenancy in Common. In this arrangement, each co-owner holds an individual, undivided interest in the property, and there are no rights of survivorship. As a result, when one co-owner dies, their share of the property does not automatically transfer to the surviving co-owner(s) but instead passes to their designated heirs, as specified in their will or by intestate succession if there is no will.

This distinctive feature of Tenancy in Common contrasts with Joint Tenancy, where the property interest does include rights of survivorship. Under Joint Tenancy, the surviving co-owners inherit the deceased co-owner's share directly, bypassing the probate process for those assets.

Leasehold Interest is not relevant in this context as it pertains to the right to use and occupy property under a lease rather than ownership of the property itself. Additionally, Joint Venture refers to a business relationship where two or more parties collaborate on a specific project or business activity, which is unrelated to co-ownership of real estate.

By understanding the implications of Tenancy in Common, it is clear how it functions uniquely in matters of inheritance and