Content

What Is Tenancy in Common?

Content

What Is Tenancy in Common?

Tenancy in common is a type of property ownership in which there are multiple owners that share ownership of a property. This is known as a type of concurrent estate.

In tenancies in common, some people might own more of the property than someone else, and every owner has the right to transfer their share to someone else during their lifetime and via something like a will or trust.

For example, let’s say you are an equal owner in a four-person tenancy in common property. You each own 25% of the property. Another owner decides to sell her share of the property to another person. This does not change how much of the property you own, nor does it affect other owners’ percentages of ownership.

No matter how much property each of the tenants in common own, they all have the right to occupy and use all of the property. If you are purchasing a TIC property, make sure that you understand what pieces of property you have rights to.

Other Forms of Property Ownership

There are several different types of property ownership besides a tenancy in common. Below, we will define the most common types of property ownership.
Tenancy in Severalty
First up, we have a tenancy in severalty. This is the most common type of ownership and refers to ownership by one person or corporation. Sometimes, for simplicity, people refer to tenancy in severalty as sole ownership. Joint Tenancy

Joint tenancy is similar to tenancy in common, but these are not the same. What is the difference between joint tenancy vs tenancy in common? In a tenancy in common, each share is separate and can be transferred at will to another person. In a joint tenancy, each owner has the same interest in the property. All owners receive this interest at the same time, on the same deed, and if one of the owners passes away, the other owners inherit the property. Commonly, this is how married couples might buy a house together. Tenancy by Entirety

Tenancy by entirety is similar to joint tenancy, but it is only available to married couples. In this type of arrangement, both people must agree to sell the property.

Conclusion

Tenancy in common is a type of ownership in which multiple people have interest in one piece of property.