Tenancy in Common
A form of co-ownership where two or more parties hold separate, undivided shares of property without the right of survivorship, allowing each owner to transfer or devise their interest independently.
What Is Tenancy in Common?
Tenancy in common is the default form of multi-party real property ownership in most U.S. states when the conveyance does not specify another type of co-ownership. Each tenant in common holds a distinct, undivided fractional interest that can be transferred, leased, mortgaged, or devised by will without the consent of the other owners. There is no right of survivorship — a deceased owner's share passes through their estate to heirs or beneficiaries.
Key Characteristics
- Owners may hold unequal shares (e.g., 50%, 30%, 20%) - Each owner has the right to possess the entire property - Each share may be transferred independently - A deceased owner's interest passes through probate, not to surviving co-tenants - Any co-tenant may seek partition to divide or sell the property
Practical Considerations
Tenancy in common is well suited to investment partnerships, friends or family members making joint purchases with different contributions, and 1031 exchange structures. A written co-ownership agreement is essential to govern management decisions, expense allocation, transfer restrictions, dispute resolution, and exit procedures. Without an agreement, default partition statutes allow any co-tenant to force a sale through court action. Property held as tenants in common does not avoid probate and may produce capital gains tax issues without proper planning.