Michigan Real Estate Exam Practice Question
The major disadvantage of ownership in severality is:
Correct Answer: C
Rationale: Ownership in severality places the burden of risk and responsibility solely on one individual. This can lead to significant stress and potential financial loss, as that person must manage all aspects of ownership alone.
Option A suggests that ease in decision-making is a disadvantage, which is inaccurate; having sole ownership often simplifies decisions rather than complicating them.
Option B incorrectly implies that sharing the risk is a disadvantage; in fact, shared risk is generally a benefit of joint ownership structures. Thus, the primary drawback remains the singular risk borne by one person.
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