Tenancy in common only requires one unity—the unity of possession. Each tenant in common has the right to possess and use the entire property regardless of their ownership percentage. Shares can be unequal (e.g., one owner holds 60% and another holds 40%). Each owner can sell, lease, mortgage, or will their individual interest without the consent of the other owners. When a tenant in common dies, their interest passes to their heirs through probate, not to the other co-owners.
Two investors purchase a rental property as tenants in common. Investor A owns 70% and Investor B owns 30%. When Investor A dies, their 70% interest passes to their children through probate, not to Investor B. Investor B retains their 30% interest.
Tenancy in common is the DEFAULT form of co-ownership when the deed does not specify. There is NO right of survivorship—interests pass through probate. Shares can be UNEQUAL. Any tenant can sell or will their share independently. This is the most flexible form of co-ownership.
Related Terms
Related Concepts
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
Frequently Asked Questions
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