What is a Tenancy in Common?
Tenancy in common is established when two or more individuals place their names on the deed to the property and therefore own the property together. A tenant can own unequal shares and can have different ownership interests. Owning property via a tenancy in common has grown in popularity due to property price increases.
What Does Type of Property can a Tenancy in Common Apply to?
Tenancy in common can apply to office buildings, undeveloped land, office space, or a house.
What are Space Assignment Co-Ownership Tenancy in Common?
Property can be held as a space assignment co-ownership tenancy in common. Essentially, these are similar to condominiums in that an individual assigns houses, apartments, rooms, officers, stores, or storage spaces to each owner. Additionally, particular tenants in this configuration have rights created in a contract that are signed by all co-owners.
A space assignment co-ownership tenancy in common can be more popular because local condominium conversion restrictions do not apply to tenancy in common conversions.
Is a Tenancy in Common Conversion Legal Everywhere?
In the state of California, a space assignment co-ownership tenancy in common may be formed for any building, whether it be commercial or residential. Furthermore, the location of the building, its zoning, size, layout, age, unit mix, or construction do not matter for regulatory purposes.
What are the Tenants in Common Rights and Liabilities?
The following is a list of the rights and liabilities that tenants in common have:
Transfer Ownership Rights in Tenants in Common Property Ownership
Each tenant in common has the right to transfer their ownership interest to a third party. Essentially, the tenant in common can sell, gift, or mortgage their share. Should the other tenants in common be negatively affected by this transfer, the owners must all agree to the transfer.
Income from Property Rights in Tenants in Common Property Ownership
Each tenant in common has a right to share the income produced from the property. Thus, each tenant in common may receive the income that is proportional to their share of ownership interest they have on the property.
Property Expenses Responsibility in Tenants in Common Property Ownership
Each tenant in common shares responsibility of the property expenses. This responsibility is based on the percentage of ownership interest each tenant in common owns. To use an example to demonstrate, if a tenant in common has 60% ownership, they will pay 60% of the expenses.
Creditors Interest in Tenants Common Property Ownership
Should a creditor gain an interest in the property, all owners of the tenancy in common may be forced to sell the property. However, the other tenants in common can be compensated for the sale of the property based on the percentage of their ownership interest.
How Do You Terminate a Tenancy in Common?
A co-owner can terminate the tenancy in common by selling, conveying, or transferring their interest in the property to a third party.
California Real Estate Attorney
If you or someone you know is thinking of creating a tenancy in common, please contact our California real estate attorney at (310) 943-1171 for a consultation. Our attorneys will provide the legal assistance you need to help create a tenancy in common for you.