Tenants in Common (TIC)

Lesson

Tenants in Common (TIC) is a type of property ownership where two or more individuals own an undivided interest. Each owner has the right to sell, transfer, or encumber their interest without the consent of the other owners. Upon the death of an owner, their interest passes to their heirs or beneficiaries, not to the surviving owners.

Practice Question #1

Which of the following is a characteristic of tenants in common ownership?

A) Right of survivorship

B) Equal ownership shares

C) Inheritance by heirs

D) Community property

Select an option above to see an explanation here.

A) Right of survivorship is a characteristic of joint tenancy, not tenants in common. B) Equal ownership shares are a characteristic of community property, not tenants in common. C) Inheritance by heirs is a characteristic of tenants in common ownership, as the deceased owner's interest passes to their heirs or beneficiaries. D) Community property is a separate type of property ownership.

Terms

Tenants in Common (TIC):: A type of property ownership where two or more individuals own an undivided interest in a property.
Right of Survivorship:: The right of a surviving owner to inherit the deceased owner's interest in a property.
Beneficiaries:: Individuals named in a will or trust to receive property from a deceased person.
Partition:: A legal action to divide property tenants hold in common.

Practice Question #2

What is the primary difference between tenants in common and joint tenancy?

A) The number of owners

B) The right of survivorship

C) The ability to sell or transfer ownership

D) The requirement for equal ownership shares

Select an option above to see an explanation here.

A) Both tenants in common and joint tenancy can have multiple owners. B) The primary difference between tenants in common and joint tenancy is the right of survivorship, which exists in joint tenancy but not in tenants in common. C) Both tenants in common and joint tenants can sell or transfer their ownership interests. D) Equal ownership shares are not a requirement for either tenants in common or joint tenancy.

Do Not Confuse With

Joint Tenants with Rights of Survivorship (JTWROS):: A type of ownership where two or more individuals hold equal shares of an asset, and the surviving owner(s) automatically inherit the deceased owner's share.

Practice Question #3

Which of the following actions can a tenant in common take without the consent of the other owners?

A) Sell their ownership interest

B) Force the other owners to sell their interests

C) Change the terms of the ownership agreement

D) Remove a lien from the property

Select an option above to see an explanation here.

A) A tenant in common can sell their ownership interest without the consent of the other owners. B) A tenant in common cannot force the other owners to sell their interests. C) A tenant in common cannot change the ownership agreement terms without the other owners' consent. D) A tenant in common cannot remove a lien from the property without the consent of the other owners or the lienholder.

Historical Example

In the early 1900s, a group of investors purchased a large tract of land as tenants in common. Over time, some of the investors passed away, and their interests were inherited by their heirs. Eventually, the remaining investors and heirs decided to sell the property. However, they had to go through a lengthy partition process to divide the property and determine each owner's share of the proceeds.