What does "tenancy in common" refer to in real estate?

"Tenancy in common" refers to ownership of property where two or more individuals hold an undivided interest in the entire property. This means that each co-owner has the right to use and occupy the whole property, not just a specific portion of it, regardless of the proportion of their ownership interest. For example, if two individuals own a property as tenants in common, one might own 60% while the other owns 40%. If one of the owners sells or transfers their share, it does not affect the ownership rights of the other tenants.

This form of ownership is significant as it allows for flexibility in how ownership interests can be passed on, as co-owners can will their share to heirs or sell it independently without needing the agreement of other co-owners. It is distinct from joint tenancy, which includes the right of survivorship, where a deceased co-owner's share automatically passes to the surviving co-owners.

Understanding tenancy in common is crucial for real estate transactions and estate planning, as it influences how property can be managed and transferred among owners.