Generally

Tenants in common each own an undivided interest in the same piece of property. Undivided means that each tenant has the right to use and possess the entire piece of property, even though that tenant only owns a percentage interest in the property.

Types

There is no legal requirement on what percentage interest each tenant must own. For example, one tenant could own 75 percent and the other could own 25 percent. Or two tenants could own 50/50.

Time Frame

Tenants in common are created at the time of acquiring the title to the property. Additionally, if co-owners own a piece of property as joint tenants, they can letter amend their title to own as tenants in common instead.

Identification

The deed will indicate how title is held. For example, the deed will say "to Joe and Mary as tenants in common."

Significance

Tenancy in common means that if one of the co-owners dies, that deceased person can pass on his or her interest in their will. Contrast this with a joint tenancy, where if one co-tenant dies, the other co-tenant takes full title to the property automatically. This is referred to as the right of survivorship. A joint tenancy includes the right of survivorship, but a tenancy in common does not.

Source:

Nolo's Encyclopedia of Everyday Law; Shae Irving, J.D., and Nolo Editors; 2008