Tenants In Common

Tenants in common (TIC) is a legal form of property ownership where two or more people jointly own real estate, but each owner holds an individual, undivided interest in the property. Key features include:

• Unequal ownership shares are allowed: Each tenant in common can own a different percentage of the property (e.g., one might own 37.5%, another 62.5%), but all have equal rights to use the entire property.
• No right of survivorship: When a tenant in common dies, their share does not automatically pass to the other owners. Instead, it passes to their heirs or beneficiaries according to their will or state inheritance laws.
• Each owner can transfer their share independently: Tenants in common can sell, transfer, or borrow against their individual share without needing consent from the other owners. This means a co-owner could sell their interest to a stranger, potentially creating new co-owners.
• Common among non-family members or parties with separate interests: TIC is often used by friends, business partners, or spouses with children from prior relationships who want to ensure their share passes to their heirs.
• Legal actions for disputes: If one tenant wants to exit the arrangement, they can file for a partition action, which may result in the property being divided or sold by court order.
• Financial liability: All tenants in common are equally liable for debts and taxes related to the property, and lenders may hold all owners responsible for mortgage payments.

TIC is the default ownership form for unmarried co-owners in many places, such as California, and is popular in real estate markets like San Francisco.

In summary, tenancy in common allows multiple people to share ownership with flexible shares and inheritance rights, but without automatic survivorship, making it distinct from joint tenancy.