If you’re buying property with others in California, how you hold the title affects your rights and what happens to your share when you pass away.
The most common forms of co-ownership are Tenancy in Common (TIC) and Joint Tenancy (JT), each with distinct legal and financial implications.
At Vistas Law Group, LLP, we’ve spent over 20 years helping Californians protect their interests in estate planning, trust administration, and Guardianship/Conservatorship matters. We provide personalized counsel in English and Spanish to ensure your ownership aligns with your goals.
Here’s what you need to know about TIC and JT.
What is Tenancy in Common (TIC)?
A Tenancy in Common (TIC) is a form of ownership that allows two or more people to own property together while maintaining individual control over their shares.
This setup is flexible, making it a popular choice for business partners, investors, or family members who want to own real estate together.
The main features of Tenancy in Common are:
- Ownership Shares Can Be Unequal – Each owner can hold a different percentage of the property. For example, one person may own 70%, while another owns 30%.
- Independent Transfer Rights – Co-owners can sell, transfer, or will their share to anyone without needing approval from the others.
- No Right of Survivorship – If one co-owner passes away, their share goes to their heirs or beneficiaries, not automatically to the other owners.
- Can Acquire Shares at Different Times – Unlike joint tenancy, co-owners can buy into the property at different times and through separate transactions.
The main limitations of Tenancy in Common include:
- Probate is Required – When a co-owner dies, their share must go through probate unless it is placed in a trust.
- Shared Management Can Be Tricky – All owners must agree on property decisions, which can lead to disputes.
What is Joint Tenancy (JT)?
A Joint Tenancy (JT) is a form of ownership where two or more people own a property together in equal shares.
It comes with a unique legal feature called the right of survivorship, meaning that if one owner dies, their share automatically transfers to the surviving owner(s).
The main features of Tenancy in Common are:
- Equal Ownership Shares – No matter how many co-owners there are, everyone must own an equal percentage of the property.
- Right of Survivorship – When one owner dies, their share automatically goes to the remaining co-owners. This bypasses probate and simplifies ownership transfer.
- Four Unities Requirement – Joint tenancy requires that all owners:
- Acquire the property at the same time
- Receive ownership from the same document
- Hold equal shares
- Have equal rights to use the property
The main limitations of Tenancy in Common include:
- Less Flexibility – Owners must hold equal shares, which may not always reflect how much each person contributed.
- Severance Risks – If one owner sells or transfers their share, the joint tenancy automatically converts to a tenancy in common.
- Tax Considerations – The automatic transfer of ownership can have estate tax implications, depending on the value of the property.
Tenancy in Common vs. Joint Tenancy Comparison Table
To help you understand better, here’s a comparison table for common and joint tenancy.
| Feature | Tenancy in Common (TIC) | Joint Tenancy (JT) |
| Ownership Shares | Owners can hold different percentages of the property, such as 60% and 40%. | All owners must hold equal shares. If there are two owners, each has 50%; if there are three, each has 33.33%. |
| Acquisition Time and Source | Co-owners can buy in at different times and through different deeds or legal documents. | All owners must acquire the property at the same time through the same deed. |
| Right of Survivorship | No right of survivorship. A co-owner’s share goes to their heirs or estate when they pass away. | Has the right of survivorship—when one owner dies, their share automatically transfers to the surviving owner(s). |
| Transfer of Ownership | When a co-owner passes away, their share must go through probate unless it’s in a trust. | No probate is needed. The deceased owner’s share automatically transfers to the remaining joint tenants. |
| Flexibility | More flexibility—co-owners can hold different shares, transfer their interests freely, and structure estate plans without restrictions. | Less flexibility—shares must be equal, and decisions require unanimous consent. |
Tenancy in Common or Joint Tenancy: Which Option Is Better For You?
The choice between Tenancy in Common (TIC) and Joint Tenancy (JT) depends on your goals.
If you want complete control over your share, including the ability to sell or pass it to heirs, TIC offers more flexibility. This works well for business partners or family members with different financial contributions.
JT, on the other hand, ensures automatic transfer to surviving owners, avoiding probate. Spouses or close relatives often prefer this, but it requires equal shares and unanimous decisions on major property matters.
Protect Your Property Rights in California: Contact Vistas Law Group, LLP
Co-owning property is a significant decision, and how you hold the title affects your estate and your family’s future. Whether you’re buying a home, investing, or planning your estate, setting up ownership correctly is essential.
At Vistas Law Group, LLP, we’ve spent over 20 years helping clients protect their assets and secure their legacies. With deep knowledge of California’s real estate and estate planning laws, we ensure your property is handled according to your wishes.
Call us today at 213-715-5206 (Los Angeles) or 951-307-9154 (Inland Empire). We offer services in English and Spanish to provide the guidance you need.