What type of ownership do Bill and Bob share if neither owns a physical portion of the property?

Bill and Bob share an undivided interest in the property, meaning that they collectively own the entire property together rather than having distinct, separate portions. This type of ownership is characterized by their rights to the whole property, rather than a divisible part. In an undivided interest, each co-owner has the right to use and access the whole property, which reflects the nature of their shared ownership without designated physical portions.

Understanding why this option is correct involves recognizing how undivided interest operates. It allows multiple owners to hold equal rights to the property, even if their investments or contributions might differ. This form of ownership is quite common in partnerships, joint ownership situations, or real estate investment scenarios where the property is not physically divided among the owners.

Other forms of ownership like fee simple interest refers to the highest form of ownership with full rights to the property, while tenancy in common and joint tenancy have specific features related to the rights of ownership and inheritance. In tenancy in common, for example, while the ownership is also undivided, it allows for fractional interests that can be passed on to heirs differently than a joint tenancy, which includes the right of survivorship and equal ownership shares.