Rents and profits collected by a tenant in possession are allocated according to what?

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Prepare for the Themis MBE Real Property Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your test!

Multiple Choice

Rents and profits collected by a tenant in possession are allocated according to what?

Explanation:
Rents and profits from property held by multiple owners belong to all of them in proportion to each owner's interest. When a tenant in possession collects rents, they must account to the other co-owners for their shares. The in-possession tenant can use their own share, but the other owners’ portions are owed to them. For example, if two co-owners own 60% and 40%, the rent collected by the one in possession is allocated so that 60% goes to the possessor’s own use (as their share) and 40% is accounted to the other owner. The crucial idea is allocation by ownership interests, not by full possession, lease term, or the property’s value.

Rents and profits from property held by multiple owners belong to all of them in proportion to each owner's interest. When a tenant in possession collects rents, they must account to the other co-owners for their shares. The in-possession tenant can use their own share, but the other owners’ portions are owed to them. For example, if two co-owners own 60% and 40%, the rent collected by the one in possession is allocated so that 60% goes to the possessor’s own use (as their share) and 40% is accounted to the other owner. The crucial idea is allocation by ownership interests, not by full possession, lease term, or the property’s value.

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