Which statement about tenancy in common is correct?

Which statement about tenancy in common is correct?

• A. Ownership interests must be equal.
• B. Ownership interests can be unequal.
• C. There is survivorship.
• D. Co-owners cannot transfer their interests.

Answer: (B)

Tenancy in common lets co-owners hold an undivided right to possess the property, but each owner’s financial interest can be different. In other words, shares do not have to be equal. This lack of requirement for equal shares is a defining feature of tenancy in common. There is no right of survivorship in tenancy in common, so when someone dies, their share goes to their heirs or as dictated by a will, not automatically to the other co-owners. Also, a co-owner can transfer or otherwise encumber their own interest without needing the others’ consent. So the statement that ownership interests can be unequal is the correct description of tenancy in common. The ideas that shares must be equal, that there is survivorship, or that co-owners cannot transfer their interests describe other forms of ownership (like joint tenancy) or are not true for tenancy in common.

Tenancy in common lets co-owners hold an undivided right to possess the property, but each owner’s financial interest can be different. In other words, shares do not have to be equal. This lack of requirement for equal shares is a defining feature of tenancy in common.

There is no right of survivorship in tenancy in common, so when someone dies, their share goes to their heirs or as dictated by a will, not automatically to the other co-owners. Also, a co-owner can transfer or otherwise encumber their own interest without needing the others’ consent.

So the statement that ownership interests can be unequal is the correct description of tenancy in common. The ideas that shares must be equal, that there is survivorship, or that co-owners cannot transfer their interests describe other forms of ownership (like joint tenancy) or are not true for tenancy in common.