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  • Daniel Rodriguez

How tenancy in common differs from joint tenancy arrangements

In California, people or companies quickly buy available properties in the state’s hot real estate market. However, one person might need financial assistance to purchase a property or land for sale. In these situations, another party might help someone buy property or land in exchange for shared ownership. A legal arrangement called “tenancy in common” could be the perfect solution when deciding ownership percentages.

Understanding tenancy in common

Tenancy in common is a legal living arrangement where more than one party shares ownership of a property or piece of land. While two owners share ownership under a tenancy in common agreement, they can control different percentages of their shared space.

Tenancy in common versus joint tenancy

The main difference between joint tenancy and tenancy in common involves ownership percentages. Under a joint tenancy arrangement, two owners automatically share 50% ownership for any shared properties or land. In tenancy in common arrangements, the property or land’s co-owners decide ownership percentages.

Another difference between these two living arrangements is what happens if a co-owner of land or property passes away. In joint tenancies, a co-owner who dies passes his share to the property or land’s surviving owner. But tenant matters differ if a property or land’s co-owner dies under a tenancy in common arrangement. Under this arrangement, the deceased party’s share passes to this person’s estate.

You or another party might also dissolve a tenancy in common arrangement. If you and the other owner work together, courts help arrange the splitting of properties under tenancy in common arrangements. When working together isn’t possible, it could be best to sell this property and split its profits with other co-owners.

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