What is Tenancy in Common?
Real Estate Dictionary
An estate or interest in land held by two or more persons, each having equal rights of possession and enjoyment, but without any right of succession by survivorship between the owners.
Tenancy in common is a form of property ownership in which multiple individuals or entities hold a shared interest in a property. Each owner has an undivided interest in the property, meaning that each owner has the right to use and occupy the entire property, and is responsible for a portion of any associated expenses, such as property taxes, insurance, and maintenance.
Unlike joint tenancy, which gives each owner an equal share of the property, tenancy in common allows for unequal ownership interests, which can be specified in the deed or ownership agreement. For example, one owner may have a 60% interest, while another has a 40% interest.
Tenancy in common also allows for each owner to transfer or sell their ownership interest without the consent of the other owners. Upon the death of an owner, their interest in the property can be passed on to their heirs or specified beneficiaries through their estate plan.
It's important to note that if one owner of a tenancy in common property wishes to sell their interest, they must obtain the consent of any mortgage lender or lien holder, as well as any co-owners who have the right of first refusal.