What is tenancy in common?

Tenancy in common is a legal form of ownership where two or more individuals hold distinct and separate shares in a property. Each co-owner, known as a tenant in common, can possess a different percentage of ownership, which does not have to be equal among all parties. This means that one co-owner could own 50% of the property, while another could own just 20%, for example. Each owner has the right to use and enjoy the whole property, regardless of their ownership percentage, and they can sell or transfer their share independently without needing permission from the other co-owners.

This ownership arrangement is particularly beneficial as it allows for shared investment in real estate while providing flexibility in ownership transfer. It contrasts with joint tenancy, where co-owners share equal ownership and have rights of survivorship. The other choices describe different concepts that do not capture the essence of tenancy in common. For example, a lease agreement pertains to rental situations, while partnership agreements are related to business ownership, and shared occupancy agreements refer to living arrangements without conveying ownership rights.