What does shared ownership as tenants in common entail?

Shared ownership as tenants in common refers to a situation where two or more individuals own a property together, but with distinct and separate interests. This arrangement characteristically features no right of survivorship, meaning that when one owner passes away, their share does not automatically transfer to the other co-owners. Instead, it can be passed on to their heirs or beneficiaries according to their estate plan or state laws.

Understanding the concept of tenants in common is crucial in real estate and estate planning because it affects how property is managed, transferred, and inherited. In contrast, a surviving co-owner does not automatically receive the deceased owner's share, which can lead to various strategies for estate planning and property disposition.

The idea that this form of ownership involves no right of survivorship is a key aspect distinguishing it from other forms, such as joint tenancy, where such a right does exist. Hence, recognizing that tenants in common allows for the individual ownership dynamics contributes significantly to comprehending this legal arrangement.