Tenancy in common is a form of ownership which allows a property to be vested (or held) by two or more people. A tenant in common has the right to sell, convey or transfer his interest in a co-owned property without consent of the other co-owner(s). Thus, one of the following actions must be taken to sever (terminate) the tenants in common co-ownership.
Sell the co-owned property and split the profits according to the percentage of ownership. For this option to be viable, all parties must agree to selling the property.
Buy out the interest of all other co-owners of the property. The tenancy in common will end when a single co-tenant acquires the title, thereby merging the entire interest in one person.
File for a partition of the property to dissolve the relationship. This is a legal action that must be done in court. If the court is unable to divide the property among owners, it will call for the real estate to be sold. The proceeds of the sale will be divided among the co-owners according to the percentage of ownership.
Tips
It should be noted that tenant in common ownership will be severed by the death of a co-tenant.
References
- "Modern Real Estate Practice"; Galaty, Allaway & Kyle; 1994
- Fidelity National Title Insurance Company: Common Ways to Hold Title
- HG. "How is a Tenancy in Common Severed?" Accessed Aug. 16, 2020.
- Internal Revenue Service. "Basic Principles of Community Property Law." Accessed Aug. 16, 2020.
- Robinhood. "What is Tenancy in Common (TIC)?" Accessed Aug. 16, 2020.
- Internal Revenue Service. "Publication 530—Introductory Material." Accessed Aug. 16, 2020.
- The Law Dictionary. "Difference Between Joint Tenancy and Tenancy in Common." Accessed Aug. 16, 2020.
- SF Gate. "Joint Tenancy with Rights of Survivorship vs. Tenants in Common." Accessed Aug. 16, 2020.
- ElderLawAnswers. "Special Ownership for Married Couples: Tenancy by the Entirety." Accessed Aug. 16, 2020.
- Cornell Law School. "Tenancy by the Entirety." Accessed Aug. 16, 2020.
- SF Gate. "Tenancy in Common Pros & Cons." Accessed Aug. 16, 2020.
- SF Gate. "What Happens in the Event of a Tenants in Common Death?" Accessed Aug. 16, 2020.
- California Legislative Information. "Interests in Property." Accessed Aug. 16, 2020.
- SirkinLaw. "Tenancy In Common (TIC)—An Introduction." Accessed Aug. 16, 2020.
Tips
- It should be noted that tenant in common ownership will be severed by the death of a co-tenant.
Writer Bio
Based in Kaneohe, Hawaii, Sherrie Coronas has been an active writer since 1984. Coronas is currently a contributing writer for "Hawaii Parent Magazine" and Faithwriters.com. She is also a frequent contributor to eHow on the topic of real estate. She holds a Bachelor of Arts in journalism from the University of Hawaii at Manoa and a real estate salesperson license in Hawaii.