Common Tenancy
Definition and meaning of Common Tenancy in real estate.
Common tenancy, also known as tenancy in common, is a form of shared property ownership where two or more individuals hold undivided interests in a single property.
In more detail
Co-owners in a common tenancy can hold equal or unequal shares of the property, such as one owner holding a third and another holding two-thirds. Each owner has the right to occupy the entire property, regardless of the size of their financial share. Owners are also free to sell, gift, or mortgage their individual interest without obtaining permission from the other co-owners.
Because this arrangement does not automatically pass ownership to the survivors, it is a popular option for business partners or unmarried co-buyers. Real estate agents often advise buyers to seek legal counsel to determine if this ownership structure fits their estate planning goals.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Also known as | Tenancy in common |
| Right of survivorship | None, deceased owner's share goes to their estate or heirs |
| Ownership shares | Can be equal or unequal, depending on the owners' agreement |
Two friends buy a vacation home together as tenants in common, with one owning a two-thirds share and the other owning a one-third share, allowing each to pass their respective portion to their heirs.
Frequently asked questions
Can one tenant in common sell their share without the other's consent?
Yes, any owner in a common tenancy can sell or transfer their individual share to another party without the consent of the remaining co-owners.
What happens to the property if the co-owners cannot agree on selling it?
If co-owners cannot agree, any owner can file a partition lawsuit in court to force a sale of the property and divide the proceeds.