Real Estate Ownership: Tenancy in Common

Tenancy in Common

• Definition: Individual interest in group ownership.

• Example: Three individuals (A, B, and C) buy a rental house together as tenants in common.

• Ownership Interest:

  • Ownership interests can be unequal. For example:
    • A: 1/8 ownership
    • B: 1/2 ownership
    • C: 3/8 ownership
  • Ownership interests may also be equal.

• Undivided Interest: Each party has an undivided interest in the entire property, meaning all share possession.

• Inheritability: Tenancy in common is inheritable to the heirs.

Inheritability Function

• Diagram:

  • A owns 1/8 of the property.
  • B owns 1/2 of the property.
  • C owns 3/8 of the property.

• Scenario: C dies.

• Outcome: C's 3/8 ownership goes to C's heirs, not to partners A and B.

Acronym for Recall

• TC: Tenancy in Common

• Meaning: "To the Children"

• Application: If a party in a tenancy in common dies, the heirs (typically children) inherit the property.