🏠 What Is Tenancy in Common in Real Estate?

Tenancy in Common (TIC) is a form of property co-ownership where two or more people own a property together, but with unequal or equal shares and no right of survivorship. Each co-owner’s share can be sold, transferred, or inherited independently.

How Tenancy in Common Works

In a tenancy in common, each co-owner—called a “tenant in common”—holds a distinct, identifiable share of the property. Unlike joint tenancy, owners are not required to have equal ownership percentages, and ownership does not transfer automatically if one owner passes away.

Key characteristics of TIC include:

  • Flexible ownership shares — owners may hold 5%, 20%, 50%, etc.
  • No survivorship rights — ownership passes through the deceased owner’s heirs or will.
  • Independent transfer rights — each owner may sell or transfer their share.
  • Shared possession — all owners may use the entire property.

Tenancy in common is commonly used among investment partners, unmarried couples, family members, and individuals contributing different amounts toward a purchase.

Why Tenancy in Common Matters

Benefits:

  • Ownership shares can be unequal.
  • Each owner’s share is inheritable.
  • Ideal for investment partnerships.
  • More flexible than joint tenancy.

Drawbacks:

  • Disputes can arise over property management.
  • Lenders or buyers may hesitate due to shared ownership.
  • One owner’s financial or legal issues can affect the whole property.
  • Selling often requires agreement among owners or a partition action.

Example of Tenancy in Common

Here’s what tenancy in common looks like in practice:

  • Three investment partners purchase a rental home as tenants in common.
  • One partner owns 50%, and the other two own 25% each.
  • If one partner dies, their share passes to heirs—not the other co-owners.
  • Any owner may sell or transfer their share independently.

Why Tenancy in Common Matters for FSBO Sellers

FSBO sellers must know how the property is titled before listing. Tenancy in common affects who needs to authorize the listing, approve offers, and sign closing documents.

  • All owners must agree to list the property for sale.
  • Each owner must sign the sales contract unless using a legal power of attorney.
  • Each owner receives their proportional share of proceeds.
  • Inherited ownership shares may require probate before a sale.

For more ownership options, see Property Ownership Types.

🔗 Related Resources for Buyers & Sellers

Frequently Asked Questions

Is tenancy in common the same as joint tenancy?
No. Joint tenancy has equal shares and survivorship. Tenancy in common allows unequal shares and no survivorship.

Can a tenant in common sell their share?
Yes. Each owner may sell, gift, or transfer their share independently.

What happens if a tenant in common dies?
Their share passes to their heirs or according to their will—NOT automatically to the other owners.

Can TIC owners have different ownership percentages?
Yes. TIC allows flexible shares such as 10%, 40%, or 50%.