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Tenants in Common Ownership

Exploring the Pros and Cons


Real estate co-ownership can offer a variety of benefits and challenges, and one popular option is tenants in common (TIC). This shared ownership arrangement allows multiple individuals to own a property together, each holding an undivided interest. While TIC presents unique advantages, it also comes with certain drawbacks that potential co-owners should consider. In this blog, we'll delve into the pros and cons of tenants in common ownership to help you make an informed decision. Pros of Tenants in Common Ownership:

  1. Flexibility and Individual Control: Tenants in common can have different ownership shares, granting co-owners the flexibility to invest according to their financial capacity and desired level of ownership. Each person maintains individual control over their share and can choose to sell, transfer, or will it to their chosen heir.

  2. Diverse Investments: TIC is an ideal option for investors looking to pool resources together to invest in higher-value properties that might have been out of reach individually. This opens up opportunities for co-owners to venture into real estate markets they couldn't access alone.

  3. Reduced Financial Burden: Shared ownership allows co-owners to divide the costs of maintenance, repairs, and property taxes among themselves, providing significant financial relief and making property ownership more attainable.

  4. Inheritance Planning: Unlike joint tenancy, tenants in common can decide how their share of the property will be distributed upon their passing. This control over inheritance planning ensures that one's wishes are honored and assets are passed on to designated heirs.

Cons of Tenants in Common Ownership:
  1. No Right of Survivorship: One of the primary drawbacks of TIC is the absence of the right of survivorship. In the event of a co-owner's death, their share does not automatically transfer to the remaining co-owners but is instead passed on according to their will or state laws of intestacy. This can lead to potential complexities and disputes among heirs.

  2. Potential Disagreements: Co-ownership can lead to disagreements over property management, expenses, and decision-making. Without a clear agreement in place, conflicts may arise, potentially leading to legal battles and strained relationships among co-owners.

  3. Limited Decision-making Authority: Each co-owner has a say in the property's management, but significant decisions often require unanimous agreement. Disagreements can impede progress and make it challenging to take prompt action when needed.

  4. Difficulties with Selling: Selling a share of a property in a tenants in common arrangement can be complicated. Finding a buyer willing to purchase a partial interest, especially if the property is not easily divisible, may prove challenging.


Tenants in common ownership offers a mix of benefits and drawbacks that should be carefully considered before entering into this arrangement. The flexibility, diverse investment opportunities, and individual control over inheritance make TIC an attractive option for many. However, potential challenges such as the lack of right of survivorship, possible disagreements, limited decision-making authority, and difficulties with selling a partial share require careful planning and clear communication among co-owners. Seeking professional advice and drafting a comprehensive agreement can significantly contribute to a successful and harmonious tenants in common ownership experience.


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