What is tenancy in common?

Tenancy in common refers to a type of ownership where a parcel of real estate is owned by two or more individuals. Each tenant holds a distinct, individual share of the property, and there is no right of survivorship involved. This means that when one owner passes away, their share does not automatically transfer to the other owners, but instead, it goes to their heirs or beneficiaries as dictated by their will or state law.

This form of ownership allows each tenant in common to sell or transfer their interest in the property independently without needing the consent of the other owners, promoting flexibility in property management. It is often chosen as a way for individuals to jointly invest in real estate while maintaining distinct ownership rights.

The other options depict different types of ownership or arrangements that do not accurately capture the essence of tenancy in common. For instance, shared ownership with equal rights sounds similar but implies a more uniform ownership structure that does not reflect the specific features of tenancy in common. The reference to a lease agreement and the automatic transfer upon death relate to different legal concepts entirely, including leasehold interests and joint tenancy, which are distinct from the voluntary arrangement of tenants in common.