What Does Tenants In Common Mean In Real Estate ?
Tenants in common is a type of ownership agreement of a real estate property. In this form of ownership, two or more people jointly own a piece of real estate through an agreement. In the agreement, it is highlighted how each person owns the property and what responsibility each owner has. |
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Tenants in common is becoming quite popular these days as it solves the problems pertaining to co-owners' rights. In this form of ownership, the owners can have equal share or unequal share of the ownership. However, if one of the owners dies, then the ownership of the share of the property is passed on to the heirs either by way of will or intestate. Also, the co-owner has the legal right to sell his share of the property to whomsoever he or she wants to.
Further, all co-owners of the property do not have to occupy the property. It is quite possible that one co-owner occupies it, while others do not, or all the co-owners do not occupy it, and instead choose to rent out the property. In case they rent out the property, the income generated is shared based on the proportion of property owned by each co-owner.
When two or more people decide to opt for tenants in common agreement, each co-owner receives a separate deed and title for his or her share of the property. The owner will have same rights to the property as a single owner, but only as far as his or her share goes.
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