What Is A Tenancy-In-Common Ownership of Property?

What Is A Tenancy-In-Common Ownership of Property?

What Is A Tenancy-In-Common Ownership of Property?

A tenancy-in-common (TIC) is a type of concurrent estate wherein multiple parties own a share of the same property.

There is no right of survivorship which means that each party has an equal right to use and possess the entire property; if one party dies, their share passes to their estate rather than automatically transferring to the other owners.

Unlike joint tenancy, tenants in common have no obligation to share ownership equally or with any particular party; they may set up unequal shares among the parties involved, and individual ownership interests can be sold and transferred at will.

Furthermore, each tenant in common is responsible for an equal portion of the liabilities related to the property.

What Are The Advantages Of Tenants In Common?

Tenancy in Common (TIC) offers many advantages compared to other forms of ownership.

  1. The most important is that there is no right of survivorship, which means the interest in the property will not automatically pass to a survivor upon the death of one of the co-owners. This gives each co-owner more control over who receives their share and how it is distributed.
  2. Additionally, each tenant can choose to give away or sell their property interest at any time without consulting the other tenants, resulting in great flexibility and freedom.
  3. Furthermore, shares may be unequal between tenants, giving each autonomy and control over their percentage of ownership.
  4. Finally, all tenants have an equal right to use and enjoy the property regardless of their percentage share.

What Are The Disadvantages Of Tenants In Common?

Tenants in common can be disadvantageous:

  1. All parties involved are jointly and severally liable for paying monthly bills and other related costs associated with the property.
  2. Additionally, one of the tenants may wish to sell their portion of the property at any time, which could create conflicts between other parties who wish to remain on the property or have different ideas about how to use it.
  3. Lastly, should a tenant in ordinary pass away without leaving a valid will, their share in the tenancy may be transferred according to state law instead of passing along to family members or specified individuals.

Which Tenancy Is Best For Married Couples?

Married couples often find that Tenants by the Entirety is the best form of tenancy for them. Under this method of ownership, a husband and wife are considered one person for legal purposes and jointly convey the property as such.

This makes it easier to transfer the title should one spouse die because there is no need for probate. Furthermore, creditors cannot attach liens against one-half of the property without both spouses being liable as tenants in their entirety.

In addition, it offers protection from each other, allowing either spouse to exclude the other from any part or all of the real estate in their will. As such, tenants by the entireties provide a safe and easy means of real estate ownership for married couples.

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