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Tenants In Common

Tenants in Common (often abbreviated as TIC) refers to a form of real estate co-ownership, where multiple parties can have an undivided fractional interest in a single property. This term is primarily related to property law and real estate. Here are some key characteristics of Tenants in Common:

  1. Undivided Interest: Each co-owner (tenant) has an undivided interest in the entire property. This means that no tenant has a claim to any specific part of the property. For example, if two people own a property as tenants in common, each might have a 50% interest in the property, but neither can claim exclusive rights to any specific half of that property.
  2. Different Ownership Percentages: Tenants in common can own different percentages of the property. One tenant might own 70%, while the other owns 30%.
  3. Separate Deeds: Each tenant in common can have a separate deed for their share of the property.
  4. No Right of Survivorship: Unlike another form of co-ownership called “joint tenancy,” tenants in common do not have the right of survivorship. This means that if one tenant dies, their share of the property doesn’t automatically go to the other tenants. Instead, it will pass according to the deceased tenant’s will or by the laws of intestate succession if there’s no will.
  5. Freedom to Transfer: A tenant in common can sell, gift, or otherwise transfer their interest in the property without the consent of the other tenants.

The tenants in common industry would refer to the segment of the real estate market that deals with properties owned under this arrangement and can include professionals like brokers, lawyers, and management companies who specialize or frequently work with TIC arrangements.