What term refers to a traditional form of property ownership where individuals share undivided interest?

The correct answer refers to a traditional form of property ownership known as "tenants in common." In this arrangement, two or more individuals hold an undivided interest in the property, meaning that each owner has a right to use and access the entire property rather than a specific portion of it. This type of ownership allows for flexibility in terms of the interest each tenant holds; they can own different percentages of the property, and there are no rights of survivorship. Therefore, if one owner passes away, their share is passed on according to their estate plan or local laws rather than automatically transferring to the surviving co-owners.

This ownership structure contrasts with other forms such as leasehold, where a tenant holds rights to use the property for a specified term but does not own it, or freehold estate, which grants full ownership of the property and all associated rights for an indefinite duration. A defeasible estate, on the other hand, is a type of ownership that can be voided upon certain conditions being met. The key feature of tenants in common is the shared undivided interest among the co-owners, making it the most fitting choice.