How Is Tenants in Common Different From Joint Tenancy?
The key differences are: ownership shares (TIC allows unequal shares — e.g., 60/40 — while joint tenancy requires equal shares); survivorship (TIC shares pass through the owner's estate while joint tenancy automatically transfers to surviving owners); and transferability (TIC shares can be sold or gifted independently without other owners' consent). TIC is common among business partners and investors, while joint tenancy is common among married couples.
What Are the Advantages of Tenants in Common?
TIC offers flexibility: owners can have different ownership percentages reflecting different contribution amounts; each owner can independently plan their share's succession through a will or trust; owners can enter and exit the arrangement independently; and it accommodates non-related co-owners well. For estate planning, TIC allows each owner to direct their share to different beneficiaries rather than having it automatically pass to co-owners.
What Are the Risks of Tenants in Common?
TIC carries potential complications: any owner can force a sale through a partition action if owners disagree; a deceased owner's share goes through probate unless planned for; all owners are responsible for property expenses proportional to their share, and disagreements over maintenance or use can arise; and creditors can place liens on an individual owner's share. A well-drafted TIC agreement addressing these scenarios is essential.
Frequently asked questions
Can tenants in common have different ownership percentages?
Yes. This is a key feature of TIC. One owner might hold 70% and another 30%, reflecting different financial contributions. Without a written agreement specifying shares, most states presume equal ownership regardless of each party's contribution.
What happens when one tenant in common dies?
Their share passes through their estate — either according to their will or through intestacy laws. It does not automatically transfer to the surviving co-owners. This allows each owner to leave their share to whomever they choose.