Posted on: 05th Apr, 2004 01:38 am
Tenancy-in-common is a form of property ownership in which two or more individuals have equal right to possess the property. But each owner holds separate ownership interest in the same property.
The owners in tenancy-in-common arrangement have unequal interest in the property. They may have received their shares at different times by different means like a grant, will, deed, etc. But what differentiates tenancy-in-common from other types of co-ownership is that there isn't any Right of Survivorship. That is, upon a co-owners death, his property interest will pass on to his heirs. The share of the deceased may also pass on to those named in the will but not to the other co-owner.
Rights under Tenancy-in-Common
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The owners in tenancy-in-common arrangement have unequal interest in the property. They may have received their shares at different times by different means like a grant, will, deed, etc. But what differentiates tenancy-in-common from other types of co-ownership is that there isn't any Right of Survivorship. That is, upon a co-owners death, his property interest will pass on to his heirs. The share of the deceased may also pass on to those named in the will but not to the other co-owner.
Rights under Tenancy-in-Common
- Co-ownership Responsibilities:
Each of the co-owners in tenancy-in-common is responsible for his share of expenses, taxes and payments for home repair. Even if one co-owner makes all payments, the other must pay him off or else, a lien will be created against his interest in the property. The other co-owner has to pay down the cash to free his property interest from the lien. Moreover, if a co-owner pays for home improvement, the others should compensate the costs or the increase in property value, whichever is less.
- Conveyance:
A co-owner can sell off his property interest, or give it away to someone he prefers. He does not require the consent of other owners. The property share may also be given away to the person of his choice at his death. This is known as the act of Conveyance. On account of this right, the debt of each co-owner creates a lien on his share of property, but it does not affect the common property or the shares held by other co-owners.
- Partition:
Tenancy-in-common allows a co-owner to terminate joint ownership by an agreement. The co-owner may divide the property into separate ownerships. He can also file a court action for partition. The court will either divide the property into each owner's share or sell it and distribute the sale proceeds among the co-owners.
Related Forum Discussion
ex took me to court to force sale of TIC property (vacant land)
Has not paid taxes for 3 consecutive years. State forecloses in 2 yrs.
I paid all the taxes to maintain ownership of my own land.
Can the court grant me sole ownership of the land?
Has not paid taxes for 3 consecutive years. State forecloses in 2 yrs.
I paid all the taxes to maintain ownership of my own land.
Can the court grant me sole ownership of the land?
Welcome Debba,
The court may grant you the sole ownership of the land. However, your ex-huband will have to sign the deed in order to grant you the ownership of the property.
The court may grant you the sole ownership of the land. However, your ex-huband will have to sign the deed in order to grant you the ownership of the property.
Cape Cod in MA; 5 siblings Tenant-in-Common Deed.
Property consists of a main house, and two rental units. Our (now deceased parents) used rents to pay real estate taxes, insurance, and mortgage, and we were assured that that would continue. For the past 12 years, two of the owners have rented these units, but will not disclose how much the rents are, and have said that the rents are not able to cover the real estate taxes. In 2010, the three other siblings learned that the real estate taxes had not been paid for over 6 years.. They had to paid the real estate taxes, our of their own resources..
Are all owners legally entitled to a portion of the rental income(s)?
Thank you
Sally Smith
Property consists of a main house, and two rental units. Our (now deceased parents) used rents to pay real estate taxes, insurance, and mortgage, and we were assured that that would continue. For the past 12 years, two of the owners have rented these units, but will not disclose how much the rents are, and have said that the rents are not able to cover the real estate taxes. In 2010, the three other siblings learned that the real estate taxes had not been paid for over 6 years.. They had to paid the real estate taxes, our of their own resources..
Are all owners legally entitled to a portion of the rental income(s)?
Thank you
Sally Smith
Hi Sally,
If all the 5 siblings are the owners of the property, then they all have the rights to get a share of the rental income.
Thanks
If all the 5 siblings are the owners of the property, then they all have the rights to get a share of the rental income.
Thanks
Thank you for your prompt reply. I hoped that was the answer!
Sally
Sally
You're welcome, Sally... It's good to note that the forum was of help to you!! :)
My fiance and I bought a house in 2008. He paid $100K down payment. We took title as TIC with ROS. When we broke up a year later, house was worth almost exactly $100K less than we purchased for. I refinanced into my name only and signed promisory note to repay $100K over 6 years. Also quit claimed to each other as TIC. Now the market came back, I want to sell. I will basically get $15K after paying off my mortgage and $80K to ex-fiance. But will I have to pay capital gains on $15K or $105K?
Hi Guest,
You will be liable for paying capital gains taxes only if you earn profit from selling of the property. You should contact a tax adviser and he will help you better in this regard.
Thanks
You will be liable for paying capital gains taxes only if you earn profit from selling of the property. You should contact a tax adviser and he will help you better in this regard.
Thanks
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