Home Loans and Support

What does ‘tenants-in-common’ mean in real estate?

In real estate, tenants-in-common signifies multiple ownership of a property. In this form of ownership, each particular owner has complete rights to the
property although many co-own it. These rights include each owner’s ability to
put up his or her part of the entire property for sale.

A co-owner of such property has an individual deed for the portion he or she owns. The owners in a tenants-in-common partnership are also prone to hazards posed to any player in the real estate industry, albeit to a lesser degree. 

Having a stake in this form of joint ownership enables one access to large,
upscale properties one may not be able to acquire otherwise. If a prospective
owner has inadequate finances, he or she may be capable of owning commercial properties with this agreement. If tenants-in-common purchase commercial
property, they gain a larger profit (compared to the single owner of a small
piece of property), and their business is more stable for a longer time. Many
prospective tenants see this type of property as attractive, and the
tenants-in-common arrangement as advantageous.

Another benefit to the tenants-in-common arrangement is better management. Firms with expertise in administration usually handle these large properties for the tenants-in-common. Thus, risk is greatly reduced, and the scale of the assets ensures greater profits. Each person in this type of joint ownership is informed
as to the progress of the property, and collects an amount from the money the
property makes.

In this vein, tenants-in-common can allot less time to supervising their investment and divert their efforts to other possible income streams. Partners in this ownership also benefit from lower tax costs compared to those of a piece of industrial property owned by one person. The tenants-in-common arrangement is beneficial in many ways. It helps one who wishes to earn from the real estate market while reducing the risks and increasing the returns.


About Moe Bedard

My name is Maurice Bedard, but most people call me Moe. I am the founder of America's #1 Mortgage Forum, LoanSafe.org, and also a website design firm called We Create Web Designs. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications. I currently live in Carlsbad, California with my beautiful wife and children.

Comments are closed.

Get free unbiased help with your tough questions. Start your own threads and post replies with over 60,000 people just like you.

Connect with us

LoanSafe Forums

TESTIMONIALS

"Hello Moe, I just wanted to tell you, your website has saved my life (literally), I stumbled on your site in the middle of losing my home, I was able to network with people going through the same thing as I am. I didn't feel alone anymore, I have tried to give back and counsel those that haven't walked in my shoes yet. We hear so much about what is wrong with America, I just wanted you to know, you are whats "right" with America."

Nina Mitchell
Loansafe & MoeSeo Inc. © 2014 | LoanSafe.org is not a bank, lender, mortgage broker, law firm or affiliated with the US Government. Privacy Policy