Tenancy in Common
What Is Tenancy in Common?
Tenancy in common is a form of shared property ownership where two or more people own a portion of the same asset, but each owner’s share can be passed to their heirs or beneficiaries.
Unlike some other ownership structures, each owner may hold different ownership percentages. For example, one person might own 60% of a property while another owns 40%.
Tenancy in common is commonly used for:
- Real estate investments
- Family property ownership
- Business partnerships involving property
Each owner has the right to use the entire property, regardless of ownership percentage.
Why It Matters
Tenancy in common provides flexibility for shared ownership while allowing each owner to control what happens to their share of the asset.
When one owner passes away, their portion does not automatically transfer to the other owners. Instead, it becomes part of that person’s estate.
This ownership structure can help individuals maintain control over their portion of a shared asset.
How Tenancy in Common Works
Each owner holds a defined share of the property.
Example: Three siblings inherit a family home and each owns one-third of the property as tenants in common.
If one sibling passes away, their ownership share transfers to their heirs or beneficiaries rather than automatically going to the other siblings.
Tenancy in Common vs Joint Tenancy
Tenancy in Common → Ownership share passes to heirs or beneficiaries
Joint Tenancy → Ownership share automatically transfers to surviving owners
These differences affect how property transfers after death.
FAQs About Tenancy in Common
Can ownership percentages be different?
Yes. Owners can hold unequal shares of the property.
Can an owner sell their share?
In many cases, yes. An owner may transfer or sell their portion.
Does tenancy in common avoid probate?
No. An owner’s share may pass through probate.
Related Terms
