Tenancy in common is an estate where two or more people share property ownership rights. In Michigan, tenancy in common is the default tenancy. This means that if two people are on title, and no tenancy is listed, they are automatically considered tenants in common.
The main separating factor between tenancies is what happens upon death. When a tenant dies, the power of the estate comes into play. In the case of the tenancy in common, probate will be opened upon death of a tenant. This should result in at least one new tenant filling the spot of the previous tenant.
The first rule of this tenancy is that shares do not need to be equally divided. For example, Mr. A could have a 25% interest, while Mr. B has a 75% interest. This is not always the case with other tenancies.
Tenancy in common allows for a co-tenant to convey to a third party regardless of the other co-tenant’s consent. Tenants have minimal control in these situations.
In short, the tenancy in common has 3 main properties:
- Apportioned interests
- Probate upon tenant death
- Tenants able to convey at will
The tenancy in common is a common estate. It can be useful if utilized properly. The purpose of this post is simply to provide knowledge and empower anyone reading to be a little bit wiser when choosing a tenancy.
Until Next Time,