What is Tenancy in Common?

Tenancy in Common is a specific type of co-ownership arrangement in real estate where two or more individuals hold ownership interests in a property. Each co-owner, or tenant in common, has an individual, undivided interest in the property, meaning that they share ownership without any specific portion being designated to each individual. A key characteristic of tenancy in common is that it does not include the right of survivorship. This means that if one of the co-owners passes away, their share of the property is not automatically transferred to the other co-owners; instead, it becomes part of their estate and can be inherited by heirs or beneficiaries according to their will or state law.

In contrast, other forms such as joint tenancy allow for the right of survivorship, where the deceased owner's interest transfers directly to the surviving co-owners. The mention of a rental agreement or fee simple ownership does not apply here since tenancy in common specifically pertains to co-ownership, not agreements for leasing or the nature of ownership itself. Understanding the nuances of tenancy in common is crucial for anyone dealing with real property and co-ownership, as it affects how ownership interests are handled in the event of death or transfers of ownership.