What Is Tenancy in Common?

Tenancy in Common, Defined (Without the Legal Jargon Headache)

Tenancy in common is a form of co-ownership where each co-owner holds an undivided interest in the property.
“Undivided” is the key word: your ownership is measured as a percentage of the whole, not a physically fenced-off chunk of the living room.

Your TIC share can be equal (50/50) or unequal (say 70/30). Even with unequal shares, co-owners generally have
the right to use and occupy the entire property (unless a separate written agreement lays out practical rules).

Most importantly, TIC typically has no automatic right of survivorship. That means if one co-owner dies, their share doesn’t
automatically “snap” to the other co-owner. Instead, it generally becomes part of the deceased owner’s estate and passes under their will,
trust, or state intestacy rules.

How Tenancy in Common Works in Real Life

Think of TIC like splitting a pizza by “ownership credits,” not by slices. You might have paid for more of the pizza, so you own a bigger percentage.
But everyone is still sitting at the same table, reaching for the same pepperoni (and arguing about who left the box open).

Example: Unequal Shares, Equal Use

Three friends buy a $600,000 rental property. Alex contributes the down payment and ends up with 50%. Bri and Casey each own
25%. They’re tenants in common, and their profits (and losses) can be split according to those percentagesif they plan it that way.

Example: Inheritance Doesn’t “Auto-Transfer”

Two siblings inherit a house as tenants in common. One sibling dies. The deceased sibling’s share usually goes to their heirs (or beneficiaries),
not automatically to the surviving siblingunless the deceased structured things differently through an estate plan.

Key Features of Tenancy in Common (The Stuff That Actually Matters)

1) Shares can be equal or unequal

TIC is flexible: ownership can match contributions. That’s useful when one person brings more cash, another brings a stellar credit score,
and a third brings… “vibes” and an air fryer.

2) Each owner can usually transfer their share

A tenant in common can often sell, gift, or leave their share to someone else. The upside is freedom.
The downside is you could wake up one day co-owning a home with a stranger who thinks maintenance is a conspiracy.

3) No automatic survivorship

Unlike joint tenancy with right of survivorship, TIC generally doesn’t automatically pass an owner’s share to the surviving co-owner(s).
That can be a feature (estate planning control) or a bug (probate delays).

4) Co-owners share responsibilitiesoften more than they expect

The mortgage and taxes don’t care who “promised” to Venmo later. In many arrangements, lenders and tax authorities can treat co-owners as jointly
responsible for paymentseven if you own a smaller percentage. A well-written TIC agreement can define who pays what, but enforcement may still
require real-world follow-through (and occasionally, real-world attorneys).

Tenancy in Common vs. Joint Tenancy vs. Tenancy by the Entirety

The biggest confusion in co-ownership is thinking these are just different names for the same thing. They’re not.
The “right” one depends on relationships, estate goals, liability concerns, and whether you want your heirs to receive your share.

One more wrinkle: if a deed is unclear about survivorship, courts often interpret the co-ownership as a tenancy in common rather than a joint tenancy.
That’s a fancy way of saying, “If you want survivorship, say it clearly in writing.”

Why People Choose Tenancy in Common

• Buying with friends or family: You can share costs, and ownership can reflect what each person actually paid.
• Blended families: A spouse may want their share to go to children from a previous relationship instead of automatically to the surviving spouse.
• Real estate investing: TIC can work for small investment groups where flexibility matters (though it also increases the need for clear rules).
• Estate planning control: If you want to decide who gets your share when you die, TIC is often more aligned than survivorship-based ownership.

Downsides and Risks (AKA: The Part Everyone Skips Until It’s Too Late)

You might end up with an “unexpected co-owner”

Because a TIC owner can often transfer their share, you could suddenly be co-owning property with someone you didn’t pick. This is why many TIC owners
use a written agreement that includes a right of first refusal (you get the first chance to buy the share before it’s sold to outsiders).

Disagreements can escalate into a partition action

If co-owners can’t agreesell vs. keep, renovate vs. don’t, rent vs. usethe legal “escape hatch” is often a partition.
Partition can be voluntary (everyone agrees) or court-ordered (everyone does not agree). Courts may physically divide the property
(partition in kind) when feasible, or order a sale and split proceeds (partition by sale) when division isn’t practical.

Probate and delays can show up at the worst time

Because TIC doesn’t automatically transfer a deceased owner’s share to the surviving owner(s), the transfer may involve estate administration.
Whether probate is required depends on how the deceased owner planned (or didn’t plan) their estate and what state law applies.

Liability and money issues don’t respect your ownership percentage

If one co-owner stops paying, the mortgage company doesn’t shrug and say, “It’s fine, you’re only 25% responsible.”
In many real-world financing setups, everyone on the loan is on the hook. Same with property taxes: if the bill isn’t paid, the consequences can hit the property.

How to Set Up Tenancy in Common the Smart Way

TIC can be simple on paper and complicated in life. The fix is not “good vibes.” The fix is clear documentation.

Checklist: What a Good TIC Agreement Often Covers

• Ownership percentages: Who owns what (and whether it changes if someone contributes more later).
• Mortgage and expenses: Who pays what, when, and how payments are tracked.
• Use rules: If it’s a residence or vacation home, who gets which days, and how conflicts are handled.
• Maintenance and repairs: Approval thresholds (e.g., “over $1,000 requires majority approval”).
• Renting the property: Allowed or not, and who manages tenants.
• Exit plan: Right of first refusal, buyout formulas, and timelines.
• Dispute resolution: Mediation/arbitration steps before court.
• Insurance: What coverage is required and who pays it.

Also: make sure the deed is recorded correctly and matches your intent. Real estate title language is not the place for interpretive dance.

Can You Sell Your Share in a Tenancy in Common?

Often, yesyou can sell or transfer your TIC interest. Practically, though, selling a fractional share of a single-family home can be difficult,
because most buyers want a whole house, not “25% of a house plus 100% of the drama.”

That’s why buyout provisions matter. Many TIC owners plan for an internal sale first (one co-owner buys another out), and only then consider outside buyers.

Taxes and Tenancy in Common (The Part That Makes People Google at 2 a.m.)

Taxes depend on how the property is used (primary residence vs. rental vs. investment) and how income/expenses are allocated.
In general, co-owners often report their share of income and deductions consistent with their ownership interest and agreements.

TIC can also show up in more advanced real estate planning and investment contexts. For example, the IRS has guidance describing conditions under which
tenancy-in-common arrangements may be treated as co-ownership rather than a partnership for federal tax purposesimportant in some commercial real estate
and like-kind exchange scenarios. This is specialized territory, so if your plan includes rental income, depreciation, or a 1031 exchange strategy,
talk with a qualified tax professional.

FAQ: Quick Answers About Tenancy in Common

Does “tenant” mean renter here?

Nope. In this context, “tenant” is historical property-law language meaning “holder of an interest.” You can be a tenant in common and never pay rent to anyone.

Do tenants in common have to be related?

No. TIC is commonly used by friends, siblings, domestic partners, and investment partners.

Can a tenancy in common avoid probate?

TIC itself does not automatically avoid probate the way survivorship ownership can. But probate may be reduced or avoided depending on estate planning tools
(like trusts or state-specific transfer-on-death options). The outcome depends on state law and the owner’s planning.

Can one owner force a sale?

If co-owners can’t agree, a partition action can sometimes result in a court-ordered sale (especially when the property can’t be fairly divided).
A good agreement can reduce the odds of this, but it can’t always eliminate the risk.

Conclusion: Is Tenancy in Common a Good Idea?

Tenancy in common is a flexible way to co-own real estateperfect when you want ownership percentages to match contributions and you want the freedom
to leave your share to your chosen heirs. The tradeoff is that TIC can invite complexity: disagreements, surprise co-owners, and estate administration delays.

The best TIC arrangements are boring in the best way: clear percentages, clear payment rules, a clear exit plan, and a clear plan for what happens if life
changes (because it will). If you’re co-owning with someone you love, like, tolerate, or merely know from a group chat, put it in writing anyway.
Love is great. Paperwork is greater.

Real-World “Experiences” With Tenancy in Common (500+ Words of Lessons People Learn the Hard Way)

The most useful thing about tenancy in common isn’t the definitionit’s the patterns that show up once real humans start sharing a real property.
Below are common experiences people report when they choose TIC. Consider them cautionary tales… with practical takeaways.

1) “We’re friends. We don’t need a written agreement.” (Narrator: They did.)

A group of friends buys a starter home together because rent is high and optimism is free. At first, it’s great: shared bills, shared chores,
shared sense of adulthood. Then one friend gets a job offer across the country. They want outnow. The remaining friends want to keep the home,
but they don’t have a plan for how a buyout is priced, how long they have to refinance, or what happens if nobody qualifies alone.
Without clear rules, the “easy exit” becomes a months-long conflict where nobody feels treated fairly.

Lesson: A TIC agreement isn’t pessimism; it’s a user manual. Include a buyout formula (appraisal process, timelines, who pays costs)
and a backup plan (sale, mediation, or refinancing steps).

2) Unequal contributions, equal resentment

Two siblings inherit a property and keep it as a family place. One sibling lives nearby and handles repairs, mowing, property taxes, and dealing with
the “mystery leak” that appears every spring. The other sibling lives far away and wants equal benefit but rarely participates. Over time, the caretaker
sibling feels like a property manager working for free, while the other feels accused for simply living their life.

Lesson: Spell out responsibilities (and compensation) in writing. If one person is doing ongoing management, consider a management fee,
credit for labor, or adjusted expense sharing. Clarity prevents the slow drip of resentment.

3) The “surprise co-owner” plot twist

In TIC, a co-owner can sometimes transfer their share. People often underestimate how weird it feels when the person across the table changes.
One co-owner sells their portion to a new investor, and suddenly decisions are driven by return-on-investment instead of personal comfort.
The new co-owner might push for renting the property, raising rents, or selling quicklygoals that weren’t part of the original vision.

Lesson: Consider a right of first refusal (or a structured buy-sell clause) so existing owners have the first shot at buying a departing
owner’s share. Also define “major decisions” and how votes work.

4) When someone dies, grief meets paperwork

One of the hardest TIC moments is when a co-owner dies and the surviving owner assumes the property will “just become theirs.”
In a TIC setup, that’s often not what happens. The deceased owner’s share may pass to heirs, beneficiaries, or through a trust,
and the surviving co-owner can find themselves co-owning with the deceased owner’s adult childrenpeople who may prefer cash over co-ownership.
Even when everyone is kind, the administrative process can be slow, confusing, and emotionally exhausting.

Lesson: If long-term ownership is the goal, align the deed with estate planning. Talk about wills, trusts, and intended beneficiaries
before it becomes urgent.

5) The last resort: partition

Most TIC owners never see a courtroom. But when disagreements become permanentone owner wants to sell, one refusespartition becomes the legal lever
that forces an outcome. It can lead to a sale and a split of proceeds, which may feel like “resolution,” but it can also feel like losing control.
People are often shocked by the cost and time involved.

Lesson: A strong agreement can reduce the chance of partition by offering realistic off-ramps: buyouts, refinancing deadlines,
mediation requirements, and clear decision rules.