Understanding Co-ownership: Tenants in Common vs. Joint Tenancy
When it comes to co-owning property, there are two main agreements: Tenants in Common (TiC) and Joint Tenancy. Below is a simple side-by-side comparison of these options.
At Co-operty, we champion the Tenants in Common (TiC) model. Why? Because it offers greater clarity, security, and governance for everyone involved. With TiC, co-owning property becomes safer, simpler, and more flexible.
Tenants in Common (TiC)
An easy and flexible approach to property co-ownership.
Ownership: Unequal shares are allowed. Co-owners can hold specific portions or percentages of the property (e.g. 85/15).
Rights: No right of survivorship; when a TIC owner dies, their share goes to their chosen beneficiaries. Each tenant in common can sell or transfer their share independently.
Example: Suitable for family members, friends, business partners or unrelated individuals.
Why Co-operty Recommends TiC
Co-ownership through Tenants in Common can lead to better financial and personal outcomes by:
Making Homeownership Achievable: Pooling resources and sharing costs can fast-track property ownership.
Supporting the ‘Bank of Mum & Dad’: Co-owning instead of gifting enables asset protection and shared participation in property growth.
Joint Tenancy
A traditional method for shared ownership.
Ownership: All co-owners hold equal shares in the property.
Rights: includes right of survivorship – if one owner passes away, their share automatically transfers to the surviving owner(s) without probate.
Shared Responsibilities: Joint tenants share the responsibility of property ownership, and tenants cannot sell or mortgage their share without the consent of the other joint tenants.
Example: Married couples often hold property in joint tenancy.