What Is a Tenancy in Common Agreement

Tenancy in common (TIC) is a type of property ownership where two or more people have equal rights to occupy and use the same property. In a tenancy in common agreement, each owner holds a percentage of the property, but unlike joint tenancy or community property, the shares do not have to be equal.

A tenancy in common agreement allows multiple owners to share in the benefits and responsibilities of owning a property while maintaining their individual ownership interests. Each owner has the right to sell or transfer their share of the property without the consent of the other owners. This means that if one owner wants to sell their share, they can do so without affecting the other owners` interests in the property.

A tenancy in common agreement can be established by a legal document called a deed which outlines the ownership shares and the rights and responsibilities of each owner. This document should be reviewed and agreed upon by all owners before signing.

In a tenancy in common agreement, each owner is responsible for a proportionate share of the property`s expenses, such as property taxes, insurance, and maintenance costs. This means that if one owner cannot afford to pay their share of the expenses, the other owners may have to contribute to cover the costs.

In the event of one owner`s death, their share of the property will pass on to their heirs or beneficiaries according to their will or state law. This means that the other owners may end up sharing the property with someone they did not intend to.

While a tenancy in common agreement provides flexibility and autonomy for each owner, it also has potential drawbacks. For example, if one owner wants to sell their share, they may encounter difficulty finding a buyer who is willing to share ownership with the remaining owners.

In summary, a tenancy in common agreement is a type of property ownership where two or more people share ownership of a property with individual ownership shares. Each owner is responsible for their share of expenses and can sell or transfer their share without consent from the other owners. However, there are potential drawbacks to this type of ownership, so it is important to fully understand the implications and have a well-drafted agreement in place.