parties
Tenancy in Common
A form of co-ownership where each owner holds a separate, devisable interest in the property, with no right of survivorship.
In depth
Tenants in common own undivided fractional interests, which can be unequal (e.g., 60/40). Each tenant can sell, mortgage, or devise their share independently. Death of one tenant passes the share to their estate, not to other tenants. Misconception: tenants in common is the default for unmarried co-owners in most states unless specified otherwise. Practically, in FSBO sales involving multiple owners, all tenants in common must sign the deed to convey the entire fee simple. Disputes over property use, sale, or expenses can lead to partition lawsuits. Investors holding properties as tenants in common allow flexible ownership splits and individual estate planning. Always document ownership shares in writing.
Educational content only. Definitions reflect typical usage in US owner-finance and FSBO transactions; statutes and case law vary by state. Consult a licensed real-estate attorney for fact-specific guidance.