A tenancy-in-common is an arrangement where two or more people own a divisible interest in the same property
Depending on the contract governing the ownership of the property, a tenant-in-common is free to legally transfer their share of the property to anyone they choose.
Example:
Three brothers purchased a property as tenants-in-common. Because the brothers are close and did not anticipate problems arising from this kind of arrangement, they agreed to a tenancy-in-common.
One of the brothers dies, and according to that brother’s will, his mother will inherit his share of the property, which gives their mother a one-third interest in the property.
Unfortunately, the surviving two brothers cannot tolerate the thought of living with their mother.
The brothers should have chosen a joint tenancy with the right of survivorship.
Joint Tenancy With Right Of Survivorship
In a joint tenancy, each person possesses an indivisible legal interest in the whole property. The right of survivorship means that if one of the three tenants dies, the other two automatically inherit the entire property ownership.
Mom would get nothing.
Joint Tenancy Without The Right of Survivorship
Joint Tenancy without the right of ownership means that the property is inherited by whoever the decedent designated in the testamentary will. In essence, the property turns into a tenancy-in-common.
Mom gets one-third ownership of the brother’s property from her favorite son.
