When real estate is purchased, there are different ownership structures by which the owners may take title. One option is to take title as tenants in common. Tenancy in common means that two or more people own a property concurrently and the co-owners have a simultaneous right to possession.  Each of the co-owners has an individual, undivided interest in the property that is owned as tenants in common, so each can transfer his or her own ownership interest.

A tenancy in common can be created by deed, by a will, or by operation of the law. A tenancy in common can be a risky form of owning real estate, because one of the co-owners could transfer his ownership interest without the permission of the others. You could end up owning property with someone you do not know and do not like. This is just one of many issues that may arise when property is owned under this ownership type.

A tenants in common agreementcan be used to protect your interest in the property and outline the guidelines of your shared ownership. Curley & Rothman, LLC can provide assistance to individuals or businesses who are buying real estate with others and who want to create a tenants in common agreement.  Our Pennsylvania real estate law firm can help you to understand possible issues that can arise, can assist with the process of negotiating an agreement, can advise you on your rights and obligations under a drafted agreement, and can help you to create a legally binding contract.  Call us today at 610-834-8819 to schedule a free consultation and learn more.

What is a Tenants in Common Agreement?

A tenants in common agreement simply outlines what each co-owners' rights and responsibilities are when a property is purchased by multiple owners and will be titled as a tenancy in common.  The parties to the real estate transaction can negotiate the desired terms to include in the tenants in common agreement in order to ensure they address the issues most important to them and to ensure they protect their own financial investment.

A tenants in common agreement typically gives co-owners the first right to buy or acquire an ownership interest when one of the co-owners intends to sell or transfer the property. This is referred to as a right of first refusal. A right of first refusal can be a condition precedent to sale, so the co-owners must be given the opportunity to buy first before the sale can ever go through.

This type of agreement can also specify when partition of the property is permitted, if ever, and how possession of the property will be shared by the co-owners.

These are just a few of the many potential terms that can be negotiated and included in a tenants in common agreement. Because these contracts can, and should, be very comprehensive and address many of the issues that arise with co-owned real estate, you should speak with a Pennsylvania estate lawyer for help with the creation of a tenants in common agreement.