Tenants In Common Problems

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“What are Tenants In Common Problems? Nowadays, most people cannot afford a whole property, so they turn to tenancies in common. Land prices rise yearly, so most people need help to buy an entire property.”

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Tenants In Common Problems

Suppose you want to buy a house or a commercial building in a prestigious neighborhood in the city. The most cost-effective option is to purchase a property with another or several tenants in common. This is the most economical solution to date.

However, you may need more money to buy a property yourself.

It doesn’t matter whether it’s your business partner, relative, or stranger. Though it can be a great way to purchase property, there are some pitfalls to avoid. As well as discussing tenants’ common disadvantages and how to resolve conflicts when Tenants In Common Problems arise.


Is There Anything You Need To Know About TIC?

What are Tenants In Common Problems? Firstly, it is essential to note that common ownership is different. In the case of TIC, we’re discussing unequal ownership shares, so you’re a co-owner of 50%. Usually, married couples own this form of ownership. For example, one person will own 70%, and another two will own 15% each.

When buying land or property, a lot depends on your state. A lawyer can help you figure out what option is right for you.

When you share a property with another person, you might encounter some tenants with common problems, which are solvable by entering into a common agreement under which you share the burden of taxes, credit fees, and other expenses.



One benefit is that you can buy any property or land you want without facing any limitations. You can buy a home in one of the city’s most prestigious neighborhoods.

It is also essential to consider that you can use all the property. If you want to buy property or land as an investor, this also gives you some advantages. No matter what percentage of the property you own, you own it 100%. You can quickly sell your shares and find new investors.

Nevertheless, there are some disadvantages of tenancy in common that you should be aware of if you intend to live or work on the premises.



A common disadvantage for tenants is potential conflict regarding property or land. Among the most significant disadvantages of tenants in common is that a tenant can sell their shares to anyone. It’s impossible to fight it if you don’t have a deal. That’s why agreeing makes sense.

If a tenant dies, you can discuss the sale of a share, which will inherit ownership, and decide that your other partners will choose the person who will purchase a share in case of a deceased tenant.

A dispute can also arise over unpaid taxes and loans. If all tenants are decent individuals who make timely payments, then there is no need to worry. However, there may be instances when one or more tenants must comply with the lease terms.

If you cannot repay the loan, this case may go to court. It does not matter what share of the property you own. If you own 15%, you must cover the loan. If you cannot repay the loan, this case will go to court.


The Process

Tenants in common who own property in common can have unequal or unequal undivided interests in every part of the property. However, each tenant may have a different financial interest in each building or land.

Renters can also sell or borrow against their respective ownership interests separately. During the common tenancy period, tenants will receive one bill for property taxes and other payments. The property taxes owed by each tenant will be specified in the tenancy in the common agreement.


How Are Joint Tenants And Tenants In Common Different?

What are Tenants In Common Problems? Joint tenancies and tenancies in common are types of joint ownership that allow two or more people to own property together, but there are slight differences in how they work and how the rules apply.


How Are Joint Tenants And Tenants In Common Different?


Ensure that you carefully consider which option is best for you and your co-owners, as you may need help resolving future problems if you make a wrong choice. In other words, what are the main differences between common and joint tenants?

A tenancy in common allows the owner to pass their ownership interest to a beneficiary in their will when they pass away.

Joint tenancy does not let you do this. Regardless of whether you have a will naming another person, you automatically transfer the title to the other surviving owner. This is known as survivorship.

Joint tenants own 100% of the property value, whereas tenants-in-common can own different percentages. This is particularly helpful when one person puts down a significantly larger deposit than the other.

Only one deed registers joint tenants at a time, so when one dies, the property immediately goes to the other owner since it is one transaction. You can also obtain an interest in a property years after the other co-owners set up a tenancy in common. However, not all co-owners must enter into a tenancy in common at the same time.

Several rules apply to all tenants in a joint tenancy or tenancy in common agreement, including:

  • Despite obtaining a separate mortgage, tenants in common can secure a jointly owned property with a joint mortgage – most lenders will only offer mortgages to tenants in common.
  • An owner can file a partition action to force the sale of a property if not all co-owners agree to sell the property.


A Tenant’s Rights in Common

There are certain rights that tenants in common have regarding their ownership, for example:

  • Ownership – Tenants in common hold separate shares of land, which they may sell or transfer without their consent
  • Possession – As long as it does not affect the rights of the other owners, tenants in common are entitled to own and use the property
  • Inheritance – Tenants in common can leave their share of the property to their heirs according to their will or by intestacy laws
  • Management – Owners are entitled to participate in property management decisions, such as maintenance, repairs, and financial obligations.
  • Legal protection – tenants in common are legally protected and can enforce their rights and ownership through legal channels if necessary.


Tenants In Common Trust Deed

During a tenancy in a common arrangement, a deed of trust establishes the rights and obligations of owners. In identifying each owner’s shareholdings, the co-ownership agreement specifies their responsibilities and terms.

In addition to instructions for distributing proceeds should the owners sell the property, the deed of trust also includes provisions relating to mortgage payments and repairs. Additionally, it outlines the process for transferring or selling shares and describes what happens when an owner dies.


Tenancy in Common: Why It Can Be Beneficial

Under this legal arrangement, two or more parties can jointly own a structure or land. Tenancies in common differ in that each owner of a portion of the property can leave it to their descendants and sell their shares.

This kind of joint tenancy offers certain benefits but also several risks. In the following section, we will discuss these risks.


Joint Tenancies Have Problems

Before entering into this arrangement, we will examine some of the disadvantages and Tenants In Common Problems.


Liability on an individual and joint basis

Tenants in common are the assets of all co-owners, and each is responsible for the debts of the others. Such a risk is unnecessary for an investment. You must also consider your creditors and the creditors of your fellow co-owners.


Ownership rights are the same for every co-owner

Among the most significant problems tenants in common face is that they are free to use their fractional ownership interest in any way they choose. A joint owner may borrow money against his share of the property, and his creditors can also claim his interest.


Survivorship is not a direct right.

Family members cannot claim the deceased tenant in common’s portion without an explicit will stating ownership transfer to an heir.


There is no restriction on tenants in common reselling their portion of the property.

Those who already own a property may need more clarification on why they bought it and how it works when they learn they now have a new co-owner. The new tenant could file a partition action lawsuit against the existing co-owners of a property to force them to sell it.


What Are Some Ways To Mitigate These Risks?

It is good to know that there are ways you can prevent these problems if you prefer this type of property ownership.


Before entering into a co-ownership agreement, do your research on each co-owner

When entering a joint tenancy agreement, you should learn as much as possible about the people you will live with. You should consider a common tenancy arrangement twice if the joint tenant has a gambling problem or poor credit.


A well-drafted contract is essential.

Tenants in common can avoid several pitfalls by signing a well-drafted written agreement. A real estate attorney is essential for creating a tenants-in-common agreement.

If one co-owner decides to sell, the agreement may give the other co-owners the legal right to reject a prospective buyer. The agreement may also grant each co-owner the right to approve or reject prospective buyers to protect existing tenants.


Remember to make a will.

Ensure you have a well-written will that can’t be easily disputed so that your heirs receive ownership of your joint tenancy portion. We recommend getting legal advice to ensure your assets survive if you die.


Legal Advice You Can Trust

A real estate lawyer with experience in real estate transactions can also help you identify potential issues and provide solutions to help mitigate them.


What You Need To Know To Change To A Tenants In Common Agreement.

Transferring ownership allows you to switch from sole owners to tenants in common and vice versa.


Tenancy in Common versus Joint Tenancy

The severance of joint tenancy is a legal document that will convert a joint tenancy into a tenancy in common. If you wish to alter your joint tenancy to a tenancy in common, you will also need to obtain a form a restriction from the Citizen Centre at HM Land Registry. There will be a property division among the owners after the severance concludes.

As a tenancy in common does not require the consent of other owners, it offers greater flexibility in the sale or transfer of individual shares in the future.

The other owners do not have to agree to your request to convert your joint tenancy into a tenancy in common. If they don’t agree, you must either:

  • Notify the other owners of your intention to sever.
  • If no severance options are available in form SEV, fill out form RX1 to register a restriction.
  • HM Land Registry’s Citizen Center will accept the form and supporting documents.
  • If you need to submit supporting documents, prepare them

If you hire a solicitor, conveyance, or legal executive, they can handle the entire process. Some fees may be associated with the actual change, but none about the actual process.

Divorce or separation from your partner may require you to become tenants in common if you want to leave your share of the property to someone else.


The Bottom Line

Although tenancies with a common lease appear to be a fantastic option to buy real property, there are a few disadvantages you should be aware of. Joint liability, lack of right of survivorship, and more can make these arrangements risky.

We recommend consulting with an attorney if you are still determining whether tenancy in common is the right choice.

It’s easy for tenants in common to make the most of their tenancy in common arrangement with the help of Attorney Real Estate Group. The company offers innovative features to help with rent collections, accounting, and agreement creation.

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