It is a written contract between two or more people who own a property together. It outlines who owns what, how decisions will be made, and what happens if one person wants to leave or passes away. Unlike joint ownership, each person listed in the memorandum of tenants in common agreement owns a separate share of the property, which they can give away or leave in a will.
Anyone over the age of 18 can enter into the agreement. This includes people who live together:
Individuals;
Business partners;
Family members;
Friends;
Unmarried couples.
The deal typically involves real estate, such as a house, apartment, or land, though it can also apply to other shared assets like vacation homes or commercial property. Each party holds a specific, separately owned share of the property, which they can sell, transfer, or leave to someone in a will.
Tenants in common contracts can also set rules for everyday responsibilities, such as how to split mortgage payments, repairs, or utility costs. The document is especially helpful for major events, like when one owner wants to sell their share or passes away, as it allows for the prevention of lengthy court hearings.
A tenants in common agreement template is useful any time several unmarried individuals decide to own property together, especially if everyone contributes different amounts or wants flexibility with their share.
This document usually covers such essential information:
Full name and contact details of all parties involved in the deal;
Full description and address of the property;
Exact ownership shares (e.g., 50/50 or 60/40);
How you'll pay for the mortgage, taxes, and repairs;
What happens if one party decides to sell their part;
What happens if someone passes away;
Which state's laws apply to the agreement.
If you're unsure about what clauses to add to the document, use a tenants in common agreement example available online or consult a real estate lawyer.
You don't need a law degree to write this document. If you use a reliable tenancy in common agreement template, here's how to fill it out:
List the full names and current addresses of all owners.
Write the full address of the property and add a description if needed.
Write down how much of the property each person owns. This can be equal, or based on how much money each person paid.
Decide who will pay for the mortgage, utilities, taxes, repairs, and other expenses.
Decide what happens if one of you wants to move out, sell their share, or dies. Do the others get the first choice to buy the share? Can someone leave their share to their family?
Specify what to do if there's a disagreement. Mediation or arbitration are common options.
Pick which state's laws the document will follow. It's usually the one where the property is located.
Add the signatures of all owners, the date, and the location.
Download the finished tenants in common agreement PDF.
If you wish to end your fixed-term joint tenancy, you must simply get the approval of your landlord and consent from the other tenants. When you end your tenancy, it ends for everyone, as mentioned in the tenants in common agreement sample. It is necessary to get all tenants' consent to end a joint tenancy with a break clause unless your agreement states otherwise.
It's not required in every state but adds legal protection to the deal. A notary confirms that everyone signed it willingly and understood what they were agreeing to. That can make a big difference if there's ever a legal dispute.
Keep a copy of the signed TIC agreement sample in a safe place. You may also file it with the county where the property is located, depending on local rules.
Property law can have particular rules about how to deal with certain types of homeownership. Below are the state laws across the U.S. regulating tenancy-in-common and joint tenancy relations.
Ala. Code § 35-4-7
Alaska Stat. 34.15.110
ARS § 33-431
Ark. Code § 18-13-113
Cal. Civil Code § 685
Colo. Rev. Stat. § 38-31-101
Conn. Gen. Stat. § 47-14a
Del. Code Ann. tit. 25, § 311
Fla. Rev. Stat. Title XL § 689.15
GA Code § 44-6-120
Haw. Rev. Stat. § 509-2
Idaho Code §§ 55-508
765 ILCS 1005
IC Title 32-17-3
Iowa Code Ann. § 557.15
K.S.A. 58-501
Ky. Rev. Stat. § 381.120
La. Stat. tit. 9 § 1711.1
Me. Rev. Stat. Ann. tit. 36 § 555
Md. Code Ann § 4-108
Mass. Gen. Laws Ann. ch. 184, § 7A
Mich. Comp. Law § 700.2901
Minn. Stat. Ann. § 500.19
Miss. Code Ann. § 89-1-7
Mo. Rev. Stat. §§ 442.025
Mont. Code Ann. § 70-20-105
Neb. Rev. Stat. § 76-118
NV Admin Code 375.128
NH Rev Stat § 477:18
NJ Rev Stat § 46:3-17
NM Stat § 47-1-36
NY Est Pow & Trusts L §§ 6-2.1, 6-2.2
N.C. Gen. Stat. § 6-41-71
N.D. Cent. Code § 47-02-08
Ohio Rev. Code Ann. § 5302.19
60 OK Stat § 60-74
ORS Volume 03, § 93.180
15 PA Cons Stat § 8422
RI Gen L § 34-3-1
S.C. Code §27-7-40
S.D. Codified Laws Ann. § 29A-6-302
Tenn. Code Ann.Title 66, chapter 1, part 1, § 66-1-107;
Title 61, part 2, § 66-1-202.
Tex. Est. Code §101.002
Utah Real Estate Code § 57-1-5
Vermont Statutes, Title 9, chapter 134, § 4352
Va. Code Ann. § 55.1-135
RCW 64.28.020
WV Code § 36-1-19
Wis. Stat. Ann. §§ 700.19; 700.20
WY Stat § 34-1-140