What is Tenants in Common?

Tenants in common is a type of ownership where two or more people own property together, but their shares can be unequal, and there is no right of survivorship. Each owner’s share can be sold, transferred, or inherited independently.

Tenants in common allow individuals to hold property together while maintaining flexibility in ownership and inheritance. Unlike joint tenancy, tenants in common permit co-owners to have unequal shares and the ability to transfer or sell their interests independently.

Tenants in common allow individuals to hold property together while maintaining flexibility in ownership and inheritance. Unlike joint tenancy, tenants in common permit co-owners to have unequal shares and the ability to transfer or sell their interests independently.

This structure is particularly valuable for business partners, investment groups, or unrelated individuals who may have differing financial contributions or succession plans. By providing a framework for shared ownership without requiring a shared inheritance, tenants in common promote fairness and accommodate diverse ownership goals.

For example, four friends, Dave, Emma, Jack, and Mia, buy a property together. Dave owns 50%, while Emma, Jack, and Mia each own 16.67%. If Dave dies, his 50% share goes to his heirs, not the other co-owners.

Pros:

• Flexible ownership: co-owners can hold unequal shares.

• Each owner can sell or transfer their share independently.

• Allows for tailored inheritance plans.

Cons:

• Probate is required for a deceased owner’s share.

• Disputes may arise if one owner wants to sell while others do not.

• Shared responsibilities, such as taxes and maintenance, may lead to conflicts.

Tenants in common provide flexibility in ownership and inheritance, allowing co-owners to hold unequal shares and pass their interests to heirs. This is an excellent choice for business partners, investment groups, or unrelated individuals who want to maintain control over their share.

It is highly recommended that a clear agreement be reached on responsibilities and property use, as sale decisions may arise without such agreements. Establishing written terms can help ensure smooth management and protect each owner’s rights.