Tenants In Common
What Does Tenants In Common Mean?
Tenants in common (TIC) refers to two or more individuals who each hold ownership of a portion of the same real property. While they often own equal portions, this is not always the case. Each tenant in common is responsible for their proportional share of expenses, including real estate taxes and insurance. Similarly, they are entitled to a share of any income generated by the property.
Insuranceopedia Explains Tenants In Common
An example of tenants in common would be 10 individuals who each own one-tenth of a 100-acre plot of land in Montana. Each tenant has the right to sell their share, either to other tenants in common or to external parties. Although a tenant in common may only own a percentage of the entire property, all tenants have the right to use the full property while they are partial owners. Additionally, because the property share passes to the tenant in common’s estate upon their death, it differs from a joint tenancy, where the share goes to the surviving tenant.
