Real Estate

Tenancy in Common

Tenancy in common is a form of property co-ownership where two or more people hold undivided interests in the same property, with each owner able to sell or transfer their share independently and leave it to heirs.

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Exam Tip

TIC = NO survivorship (heirs inherit). Can have UNEQUAL shares. Only POSSESSION unity required. Default form of co-ownership.

What is Tenancy in Common?

Tenancy in common (TIC) is a form of concurrent property ownership where two or more people share ownership of the same property. Each tenant in common owns an undivided interest in the entire property, meaning they have the right to use the whole property, not just a specific portion.

Key Characteristics

FeatureDescription
Undivided interestEach owner can use entire property
Unequal sharesOwners can have different percentages
No survivorshipInterest passes to heirs, not co-owners
Individual transferCan sell or mortgage own share
Separate titlesEach owner has own deed

Ownership Interests

ScenarioExample
EqualA, B, C each own 33.3%
UnequalA owns 50%, B owns 30%, C owns 20%
Two-partyA owns 60%, B owns 40%

Tenancy in Common vs. Joint Tenancy

FeatureTenancy in CommonJoint Tenancy
Right of survivorshipNoYes
Interest at deathGoes to heirsGoes to surviving owner(s)
Ownership sharesCan be unequalMust be equal
CreationDefault for co-ownersRequires specific language
TransferabilityCan transfer freelyTransfer severs joint tenancy

Four Unities Comparison

UnityJoint TenancyTenancy in Common
TimeRequired (same time)Not required
TitleRequired (same deed)Not required
InterestRequired (equal shares)Not required
PossessionRequired (right to whole)Required (right to whole)

Rights of Tenants in Common

RightDescription
PossessionUse entire property
SaleSell own interest
MortgageEncumber own interest
LeaseRent out own interest
WillLeave interest to heirs
PartitionForce sale/division

Partition Action

If co-owners cannot agree on property use or sale:

  • Partition in kind - Physical division of property
  • Partition by sale - Court-ordered sale with proceeds divided
  • Any owner can request partition through courts

Common Uses

Use CaseWhy TIC
Investment propertyMultiple investors with different shares
Inherited propertyDefault when multiple heirs inherit
Unmarried couplesNo automatic survivorship desired
Business partnersFlexible ownership percentages

Exam Alert

Tenancy in common = NO right of survivorship. Interest passes to HEIRS, not co-owners. Shares can be unequal. Only possession unity required. Compare carefully with joint tenancy (equal shares, survivorship, four unities required).

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