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Tenancy in Common (TIC)


Tenancy in Common (TIC) is a type of shared property ownership where two or more individuals each hold an interest in a property. Each owner has the right to leave their share of the property to any beneficiary upon the owner’s death. Importantly, TIC ownership doesn’t carry a right of survivorship, thus differing from other types of co-ownership like joint tenancy.


The phonetics of the keyword “Tenancy in Common (TIC)” would be:”Tenancy” is pronounced as Tee-nuh n-see.”In” is pronounced as in.”Common” is pronounced as Kom-uhn.”And TIC is pronounced as tick.

Key Takeaways

  1. Shared Ownership: Tenancy in Common (TIC) is a form of property ownership where two or more people jointly own a property. Each tenant in common owns a separate and distinct share of the property, which can differ in size. They have the right to use and enjoy the entire property, even if they own a smaller share.
  2. No Survivorship Right: Unlike other forms of joint property ownership, TIC does not include the right of survivorship. This means that if a co-owner dies, their interest in the property does not automatically pass to the surviving co-owners. Instead, it goes to the deceased owner's heirs or beneficiaries, according to their will or the law of intestate succession (if they die without a will).
  3. Flexible and Transferable Ownership: One of the key features of TIC is the flexibility it offers to the owners. Each co-owner can sell, mortgage, or transfer their share independently without needing consent from the other co-owners. This makes TIC a particularly attractive option for unrelated groups of people wishing to co-own property, such as business partners or groups of investors.


The term Tenancy in Common (TIC) is important in business and finance as it pertains to the shared ownership of a property by two or more parties where each party owns a specific undivided interest in the asset. It is significant because each tenant in common is able to independently sell or bequeath their ownership stake, or have it seized by creditors, without requiring consent from the other tenants in common. Furthermore, each tenant’s ownership interest can vary in size and duration, and the tenants don’t necessarily have to contribute equally to the property’s purchase price. The TIC structure also provides a measure of legal protection as the property’s ownership is not affected by changes in the personal circumstances of any tenant in common, thus providing stability for business operations. Overall, TIC offers flexibility and autonomy, making it an attractive option for many business and investment property owners.


Tenancy in Common (TIC), a type of concurrent estate, is commonly used within real estate as a way for two or more people to hold an interest in a property. The purpose is to share the ownership rights to the property, but the physical space is not divided per se, each person has an undivided, fractional interest in the entire property. This arrangement is highly flexible and customizable as the tenants can own unequal shares and can assign them independently in their wills. Also, a TIC agreement can delineate who pays for what and how profits when the property is sold.In the realm of investment, TIC allows small investors to own a proportionate share of large income-producing real estate such as office buildings, shopping centers or rental housing complexes. The use of TIC expands the scope for small investors as it opens avenues for them that would typically only be available for large, institutional investors. It allows them to participate in real estate markets and potential profit margins that they might not otherwise have access to. With this, individuals can grow their wealth, safeguard their investment and benefit from the real estate market.


1. Real Estate Investment: A group of friends decide to have a joint investment in purchasing a commercial property. They agree to split the costs and profits amidst them according to a pre-arranged ratio, not necessarily equal. This is where the Tenancy in Common arrangement comes into play, allowing each friend to own a specific fractional interest in the real estate property. 2. Family Homes: A family inherits a house from a deceased parent. Although there may be one home, each sibling owns a certain percentage of that home’s value as Tenancy in Common. None of them have specific claim to any one part of the house but are co-owners of the entirety. 3. Business Partnership: Two entrepreneurs decide to start a restaurant business together. Each person contributes different amounts of capital, hence one partner owns 60% of the restaurant (as he invested more money) and the other owns 40%. Their ownership is defined through a Tenancy in Common agreement; giving each partner rights to their share without any specific division of the property.

Frequently Asked Questions(FAQ)

What does Tenancy in Common (TIC) mean in the finance and business sector?

Tenancy in Common (TIC) is a type of ownership where two or more individuals jointly own property. Each owner holds an individual and undivided interest in the entire property, and each has the right to leave their share of the property to any beneficiary upon death.

How is a Tenancy in Common different from Joint Tenancy?

A key difference between Tenancy in Common and Joint Tenancy lies in the survivorship rights. In Joint Tenancy, if one owner dies, their share automatically passes to the surviving owners. On the other hand, with Tenancy in Common, individuals have the right to leave their share of the property to any beneficiary upon their death.

What happens when one of the owners in a Tenancy in Common dies?

In a Tenancy in Common ownership, when one owner dies, their share of the property is transferred to a beneficiary of their choice as per their will. It does not automatically pass to the surviving owners.

Can the percentage of ownership differ in a Tenancy in Common?

Yes, the percentage of ownership can differ for each party involved in a Tenancy in Common. It is not necessary to have equal stakes, and the ownership stake is typically determined by the contribution of each party towards the property.

Can an owner sell their stake in a Tenancy in Common?

Yes, an owner in a Tenancy in Common can sell or mortgage their interest in the property without the consent of the other owners. However, they can only sell their individual stake, not the entire property.

How is a Tenancy in Common created?

A Tenancy in Common is created through a deed, will, or operation of law. It can be established when a property is bought, or it can be formed later by owners agreeing to convert a joint tenancy into a Tenancy in Common.

Related Finance Terms

  • Undivided Interest: This refers to the right of an owner to enjoy the benefits and utilize the property as a whole, even though the percentage of ownership may be fractional in a Tenancy in Common (TIC) arrangement.
  • Partition Action: This is a legal action that TIC co-owners can resort to in order to split the shared (common) property. The court will likely force a sale of the property and the proceeds will be split as per the ownership ratios.
  • Joint Tenancy: This is a type of co-ownership where the surviving owner inherits the share of a deceased owner, something which is not a feature in Tenancy in Common.
  • Deed of Trust: In a TIC, each co-owner typically has his/her own separate deed of trust that corresponds to their percentage of ownership.
  • Right of Survivorship: This term refers to the process where the ownership rights of a deceased party’s share of a property pass on directly to the surviving members. This is not applicable in a Tenancy in Common, where the deceased’s share is passed to his/her estate or named beneficiary.

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