What Does It Mean to Own Property as "Tenants in Common"?

Owning property as Tenants in Common means two or more people (or businesses) own an undivided interest in a piece of property. Each property owner has the right to use the property without being able to exclude the other owner or owners from using it unless a separate written agreement states otherwise. When one of the tenants dies, his or her interest in the property passes to his or her heirs and not to the other tenants (unless the other tenants are also heirs).

There is no limit to the number of owners who can hold an interest in the property.

Tenants in Common v. Joint Tenants with Right of Survivorship
The biggest difference between a Tenancy in Common and Joint Tenancy is in the way the property is transferred when an owner dies. Under a Tenancy in Common, the deceased owner's interest passes to his or her heirs via Will, Trust, intestate, etc. Under a Joint Tenancy, the deceases owner's interest passes to the other owners (i.e. those who "survived" the deceased owner).

Other characteristics of a Tenancy in Common
(1) Ownership can be held in equal shares or unequal shares.
(2) Each owner has the right to possess the property without being able to exclude the other. Again, a separate agreement can be drafted and signed by all of the owners outlining who is to occupy the property and when. This is often the case in a time-share property.
(3) When an owner dies, that owner's interest passes to that owner's heirs.

Other Suggested PostsBefore buying property as a "Tenant in Common" check out these other related articles: Estate Planning and the Enhanced Life Estate Deed, The Difference Between the Enhanced Life Estate Deed, Warranty Deed and Quitclaim Deed, The Traditional Life Estate Deed, The Revocable Transfer on Death Deed and California's Revocable Deed, Joint Tenants with Right of Survivorship.