Tenancy in common refers to a form of co-ownership where two or more individuals hold an undivided interest in a property, without the right of survivorship. In this arrangement, each tenant in common has a distinct, individual ownership share in the property, which may or may not be equal. They have the right to possess and use the entire property, without the need for physical division.
Key features of tenancy in common include the following:
1. Undivided Ownership: The property is collectively owned by the tenants in common, with each having a proportionate interest. However, unlike joint tenancy, there is no automatic right of survivorship.
2. Individual Share: Each tenant in common has a specific and identifiable share, which may be equal or unequal depending on the specific agreement or contribution made.
3. Separate Titles: Each tenant in common is entitled to a separate title or deed reflecting their ownership share.
4. Transferability: Tenancy in common shares can be bought, sold, or transferred independently, without requiring the consent or involvement of the other co-owners.
5. No Right of Survivorship: Upon the death of a tenant in common, their ownership interest does not automatically pass on to the remaining co-owners. Instead, it becomes part of their estate and can be distributed according to their will or applicable laws of succession.
Tenancy in common is commonly utilized when individuals want to invest in a property together, while maintaining distinct shares and ownership rights. It can also be useful in estate planning to ensure that specific individuals inherit a particular portion of the property.
