Start My Answer

Tenancy in Common – Defined

Dena Standley | February 23, 2023

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

People who undergo a Tenancy in Commmon arrangement ^^

Summary: Tenancy in Common is a legal arrangement where two or more parties share ownership of a real-estate property or land. Tenancy in Common can be the ideal way to own a property or home if you do not have enough money to buy it alone, but it also comes with risks. If you find yourself struggling to pay your share of a mortgage under a TIC contract because of other debts, use SoloSuit to fight off debt collectors.

Tenancy in Common (TIC) is a unique type of co-ownership in which two or more parties share equal or varying ownership rights of a commercial or residential property. If the co-owner dies, their share of the property goes to the beneficiary.

Further, each person's ownership interest in TIC can be sold at any time because the tenants in common may not have the same ownership interest at a similar period.

Tenancy in Common can be confused with the other three types of shared ownership. To help iron out their differences, here are some definitions:

  • Joint tenancy: The owners must have the same undivided interest in the property and must receive the interests at the same time and in the same deed. If one member dies, the interest goes to the other owner, not an heir.

  • Tenancy by entirety: Mostly available to married couples, this ownership agreement means the property in question cannot be sold without the consent of both parties.

  • Tenancy in severalty: Can also be referred to as sole ownership, where a single person owns the property.

To further help you understand Tenancy in Common, we will discuss how it works, the pros and cons, and how to dissolve it.

Understanding how Tenancy in Common works

Ideally, when you enter a Tenancy in Common ownership agreement, you first define the percentage of property each person owns, and it must be indicated in the property deed. Even though you may own a higher percentage of the property, your privileges and access to the property remain equal.

However, some co-owners may draft another contract that outlines how each party will use the property. Another feature of TIC is that you can include more people in the property ownership and change the TIC agreement.

As mentioned earlier, if a co-owner dies, the beneficiary or heir automatically receives the stake in the property. In special cases, the property can be redistributed to the other owners if specified in the TIC agreement.

Let’s explore an example of what this might look like.

Example: Ben, Bobby, and Brian bought a small commercial property at $200,000. Ben paid 50% of the money, while Bobby and Brian paid 25% each. Even though Ben spent more than his friends, they all had equal rights to use the property. Unfortunately, Brian passed away, and his son became the new owner. The son did not want to continue with the TIC and sold his share to Bobby.

Pros and cons of Tenancy in Common

Tenancy in Common can be the ideal way to own a property or home if you do not have enough money to buy it alone. In addition, splitting up the maintenance costs and other payments is also a cost-effective way of running the property. As you enjoy these benefits, there are also drawbacks to consider. The table below gives a breakdown of the pros and cons of TIC.

Pros and Cons of Tenancy in Common

Pros Cons
Own a fair share of a property with whatever funds you have Equal responsibility for all mortgage payments despite split ownership
Decide who inherits your share of the property No control over who enters the TIC agreement when co-owner dies
Flexibility of ownership (you can add or remove someone) A member can force the others to sell unwillingly
Can qualify for loans due to owning a property Mortgage non-payment of one party affects your credit score
Take a lower investment risk when you co-own Some lenders shy away from accepting TIC due to the complex paperwork involved
Allows you to build equity earlier—using limited funds Can be challenging to sell your share to potential buyers who dislike co-ownership

Non-payment of your mortgage is also a con that puts your ownership of the property at risk. An available option to help you deal with debt is to request your creditor to settle. For instance, you can settle your other debts and remain with the mortgage—which makes it more manageable after clearing the rest.

To learn more about how to settle a debt, check out this video:

How to dissolve Tenancy in Common

There are several ways you can terminate a Tenancy in Common contract, although the laws vary depending on the state. You can use the following options:

  • Unanimous agreement: Occurs when all co-owners agree to dispose of the property.
  • Court-ordered: If you disagree on the way forward, a court can order the property divided or sold and money shared out.
  • Ousting one party: You can forcefully remove one member through the courts but be prepared for a counter-lawsuit.
  • Sell your share: Giving up your interest is the easiest way to get out of a TIC.

Did you know you can settle a debt you’ve been sued for by selling your share of TIC property? In fact, you can often settle a debt for less than the original amount. If you’re being sued for debt, first, respond to the lawsuit with an Answer and then send a free offer to settle with SoloSettle to move the settlement discussions out of court.

Settle with SoloSettle

Make an Offer

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

Respond with SoloSuit

Get Started

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

We have answers

Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.

Get Started

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court

Not sued yet?

Use our Debt Validation Letter.

Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.

Let's Do It

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather

Get Started