Tenancy in common is a form of co-ownership where two or more people each hold a distinct, transferable share of the same property. Shares can be unequal, each owner may sell or will their portion independently, and there is no automatic right of survivorship, so a deceased owner's share passes to their heirs.
How does tenancy in common work?
In a tenancy in common, each co-owner holds a fractional but undivided interest in the property. Undivided means no single owner controls a specific room or acre, everyone shares the right to use the whole, even if one person owns 60% and another owns 40%. The percentages describe ownership value, not a physical partition.
The ownership shares and their percentages are typically spelled out in the deed and recorded with the county to establish clear title. Crucially, each owner's share is their own property: they can sell it, mortgage it, gift it, or leave it in a will without needing the others' permission.
Key features of tenancy in common
- Unequal shares are allowed, matching each owner's contribution.
- No right of survivorship, a deceased owner's share goes to their heirs.
- Each owner can transfer their share independently.
- New co-owners can join by buying an existing owner's interest.
- All owners share the right to possess and use the entire property.
When co-owners disagree and cannot resolve a dispute, any tenant in common can generally file a partition action, asking a court to either physically divide the property or order its sale and split the proceeds according to ownership shares.
Tenancy in common vs. joint tenancy
Tenancy in common is often chosen precisely because it lacks the survivorship feature of joint tenancy. The two structures answer the same question, how do multiple people co-own property, in opposite ways when it comes to death and inheritance.
The practical differences
- Inheritance: a tenant in common's share passes to their chosen heirs; a joint tenant's share passes automatically to co-owners.
- Share size: tenancy in common allows unequal shares; joint tenancy requires equal ones.
- Formation: tenancy in common has no unity-of-time or unity-of-title requirement, so owners can join at different times.
- Probate: a tenant in common's share typically goes through probate; a joint tenant's transferred share usually does not.
For diaspora families using Dara to pool money into US real estate, tenancy in common is often the more flexible fit. It lets each contributor own a share proportional to what they put in, and lets each relative leave that share to their own children back home, rather than forcing it to the other co-owners.
Who should choose tenancy in common?
Tenancy in common suits business partners, friends, and extended family members who contribute different amounts and want to keep control over their individual stake, including who inherits it. It is the default co-ownership form in many states when a deed names multiple owners without specifying survivorship.
Pros | Cons |
|---|---|
Flexible, unequal shares that reflect actual contributions. | No survivorship, so shares may pass through probate. |
Each owner can sell or will their share independently. | A co-owner can sell to a stranger you did not choose. |
No requirement that owners acquire title at the same time. | Shared liability for the property, including a property tax bill or a lien. |
A partition action provides an exit when co-owners disagree. | Disputes can force an unwanted sale via partition. |
State law shapes the default rules, partition procedures, and how a co-owner's mortgage or debts affect the others, so the exact protections differ by jurisdiction. This is general education, not legal advice; confirm the structure with a local attorney before recording.
Frequently asked questions
Yes. Owners can hold any percentages that add up to 100%, such as 70/30 or 50/25/25. The shares typically reflect how much each person contributed, and they are stated in the deed so ownership is clear on the record.
There is no right of survivorship, so the share passes to the owner's heirs or beneficiaries under their will, or by state intestacy rules if there is no will. This usually means the share goes through probate.
Generally yes. Each tenant in common can sell, gift, or mortgage their own share independently. The buyer simply becomes a new co-owner. This flexibility is a core advantage, but it also means a stranger could join the ownership group.
It is a court process any co-owner can start when owners cannot agree. The court either physically divides the property or, more commonly, orders it sold and splits the proceeds by ownership share. It is the ultimate exit from a tenancy in common.
Often, because it allows unequal shares and lets each relative will their portion to their own heirs. But it does not avoid probate the way joint tenancy can. The right choice depends on your inheritance goals and state law, so consult a local attorney.
Updated July 21, 2026
Disclaimer
Dara provides this glossary for general educational purposes only. It is not financial, legal, or tax advice, and availability, fees, and terms vary by country and corridor.
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