What is a tenancy in common?

The correct answer is that a tenancy in common is a form of concurrent ownership where each co-owner has an undivided interest in the property. In a tenancy in common, two or more individuals can own a property together, but each person's interest is separate and distinct. This means that each co-owner has the right to possess and use the entire property, even though they may only own a specific percentage of it.

A key feature of a tenancy in common is that it does not include rights of survivorship, which differentiates it from joint tenancy. In a joint tenancy, if one co-owner dies, their ownership interest automatically passes to the surviving co-owners. In contrast, in a tenancy in common, a deceased co-owner’s interest passes to their heirs or as directed by their will, maintaining the distinct interests of each co-owner.

This form of ownership is particularly useful in various contexts, such as when multiple family members, friends, or business partners invest in real property together. Each co-owner's ability to independently transfer or sell their share contributes to the flexibility and versatility of this ownership structure.