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    Legal & Title

    Tenancy in Common

    SilverCrest EstatesThe SilverCrest Estates Team

    Definition

    Tenancy in common is a form of co-ownership where two or more people hold title to a property, but each person's share can be unequal and each owner can sell, gift, or will their share independently. Unlike joint tenancy, there is no automatic right of survivorship, so when a co-owner dies, their share passes to their heirs or according to their will rather than to the other owners. This structure is common among business partners, unrelated investors, or family members who inherited a property with unequal shares. For a homeowner selling a house held as tenants in common, every owner generally must agree to a full sale, though an individual owner can sometimes sell just their fractional interest to someone else. Disagreements among tenants in common are a frequent source of stalled sales, since one owner wanting cash now and another wanting to hold the property can create conflict. Knowing your percentage of ownership is essential for figuring out how proceeds will be divided. Two features define tenancy in common: shares can be unequal, and there is no right of survivorship. When a co-owner dies, their share passes through their estate to their heirs rather than to the other co-owners, which is how a house ends up with four or five owners a generation later, some of whom have never seen it.

    Example

    Three cousins, Malia, Josh, and Devon, inherited their grandmother's house as tenants in common, with ownership split 50%, 30%, and 20% based on the will. When they decided to sell, the title company divided the net proceeds exactly according to those percentages rather than splitting them evenly among the three of them. Josh initially wanted to keep the house as a rental property, while Malia and Devon both needed their share of cash sooner rather than later. After a few tense phone calls and a family meeting, all three agreed that selling was simpler than trying to co-manage a rental from three different cities. Because the unequal split was clearly documented in the deed and probate paperwork, closing was straightforward once everyone signed, and each cousin received a wire transfer matching their exact percentage within a day of closing. That is also why these sales stall. Every owner generally has to sign the deed, so the work is locating each interest holder, confirming what share they hold and getting agreement on price and timing — before any of that, a title search establishes who actually owns what on the record.

    Frequently asked questions

    In many states, yes, you can sell or transfer your individual fractional interest without the other owners' consent. However, finding a buyer for a partial interest in a house is much harder than selling the whole property.

    Proceeds are divided according to each owner's percentage of ownership as recorded on the deed, not necessarily equally. This percentage should be documented clearly to avoid disputes at closing.

    The other owners may need to file a partition action, asking a court to order a sale or physical division of the property. This process can be slow and costly, so most co-owners try to negotiate a buyout or agreement first.

    Yes, because there's no automatic right of survivorship, a deceased owner's share becomes part of their estate and passes through probate or their will. This can add a co-owner you didn't expect, such as an heir who now needs to agree to any future sale.

    Yes, unlike joint tenancy, tenancy in common allows any split, such as 70/30 or 50/25/25, based on how much each person contributed or what a will specifies. This flexibility is part of why families with unequal inheritances often use this structure.

    All owners generally need to agree on the listing price and terms before signing a listing agreement, so it helps to get everyone's input early rather than presenting a decision after the fact. A neutral third party like an agent or attorney can help mediate disagreements.

    Yes, this is a common solution when one owner wants to keep the property and others want cash, and it avoids the cost and hassle of listing on the open market. The buyout price is usually based on a professional appraisal of the home's value.

    Generally yes, through a partition action, which asks a court to divide the property or order it sold and the proceeds split. It is slower and more expensive than agreement, so it is usually a last resort.

    Typically yes. A tenant in common can usually transfer their own undivided interest without the others' consent, though few outside buyers want a partial interest, which limits the practical market.

    No. Unlike joint tenancy with right of survivorship, a tenant in common's share passes through their will or under state intestacy law to their heirs.

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