Joint tenancy and tenancy in common are two of the most common ways to co-own property. The key difference: joint tenancy includes a right of survivorship (ownership automatically passes to the surviving owner), while tenancy in common allows owners to leave their share to anyone they choose. Which option is best depends on your relationship with your co-owners and your estate planning goals.
People might choose a joint tenancy or tenancy in common agreement when they are a married or cohabitating couple, family members, business partners, investment partners, or even roommates choosing to own property together. Whatever your reason, learning the advantages and disadvantages of a joint tenancy vs. tenancy in common agreement will help guide you through the property ownership process.
Note that while the term "tenancy" is used in rental situations, in this context it refers to ownership interest in a property. The owners in these arrangements would be referred to as joint tenants or tenants in common and are not renters.
What is joint tenancy?
Joint tenancy is a form of property ownership where two or more people hold equal interest in a property with equal rights, and when one owner dies, their share automatically transfers to the surviving owner(s). This automatic transfer is called the right of survivorship. The most common example is a married couple purchasing a home together.
For a property to qualify as joint tenancy, four conditions must be met:
- All tenants must obtain the property at the same time
- Each tenant must hold an equal share of ownership
- All tenants must acquire their interest from the same title document
- All tenants must have equal rights to use and occupy the entire property
According to Gagan Saini, the director of acquisitions of JiT Homebuyer, a real estate solutions and investment firm in Metairie, Louisiana, a joint tenancy agreement requires owners to agree on any decisions about the property. "This includes decisions such as when to sell the property, who is responsible for maintenance and repairs, and how the profits from the sale of the property are divided," Saini says.
Advantages of joint tenancy
There are many advantages of joint tenancy.
- Right of survivorship: When one co-owner dies, ownership automatically transfers to the remaining owner(s) without going through probate
- No transfer taxes for spouses: A surviving spouse becomes full owner without owing transfer taxes
- Equal ownership: All parties hold equal shares—two owners each control 50%, five owners each control 20%
“Just because Joint Tenancy avoids probate, not mean the transfer is automatically complete in practice. I have had clients run into delays because the surviving owner still must update the title, deal with lender requirements, or sort out paperwork with the county before they can sell or refinance. Problems also come up when the property was supposed to be part of a broader trust plan but was never retitled correctly. I usually tell clients to confirm how the property is titled, keep records current, and make sure their overall estate plan is aligned, so there are no surprises after their passing.”
If unmarried persons own property in joint tenancy, surviving owners also avoid probate, though they may need to claim the inherited property as a gift.
Disadvantages of joint tenancy
Here are the major disadvantages of joint tenancy.
- Creditor exposure: If one tenant owes a debt, a creditor can terminate the joint tenancy—even if other co-owners have nothing to do with that debt
- No inheritance control: Ownership automatically passes to co-owners, not to your chosen heirs
- Partition actions: If co-owners disagree on what to do with the property, resolving disputes requires filing a costly and time-consuming lawsuit
“When a creditor goes after a property held in joint tenancy, it usually does not mean the whole property is immediately taken, but it can be disruptive. A lien attaches to one owner’s interest, which can force a sale or lead to a partition if the debt is not resolved. In bankruptcy or judgment scenarios, that clean survivorship feature can disappear, and the property effectively turns into shared ownership with added pressure from the creditor. Before choosing joint tenancy, I advise clients to consider each owner’s financial exposure and whether another structure offers better insulation.”
If you're considering joint tenancy with someone who has bad credit, significant debt, or works in a liability-prone profession, weigh these risks carefully.
What is tenancy in common?
Tenancy in common (TIC) is a form of property ownership where two or more people hold title together, but each owner can hold different percentage shares and sell their interest at any time without the other owners' consent. Unlike joint tenancy, there is no right of survivorship—each owner can leave their share to anyone they choose in their will.
“In investment or partnership settings, I get nervous when people rely on tenancy in common without a clear agreement in place. The ability for an owner to sell their interest at any time sounds flexible, but it can leave you dealing with a new co-owner you did not choose. I usually recommend a written agreement that covers buyout rights, how decisions are made, and what happens if someone wants out. In many cases, holding the property through an LLC gives you more control and a cleaner framework for managing those issues.”
Even if one owner holds 30% and another holds 70%, both have equal rights to use the entire property. This is called undivided interest.
Additionally, on the occasion of their death, each co-owner may choose who will be the beneficiary of their ownership as part of their estate.
Advantages of tenancy in common
Tenancy in common may be the better choice in these situations.
- Unequal investment: Owners contribute different amounts and want ownership percentages to reflect that (e.g., 25% vs. 75%).
- Blended families: A remarried spouse wants to leave their share to children from a previous marriage rather than their current spouse.
- Investment groups: Business partners or investors want flexibility to sell their share independently.
Disadvantages of tenancy in common
Here are some disadvantages of tenancy in common.
- No right of survivorship: If you die without a will, your share goes through probate and is distributed according to state law.
- No control over co-owners: Any owner can sell their share without your consent, meaning you could end up co-owning property with a stranger.
“When someone dies holding property as a tenant in common without a will, their share does not go to the co-owner by default; it passes under state intestacy laws, which can produce results they never intended. I have seen surviving co-owners suddenly dealing with multiple heirs, including relatives who have no connection to the property, which can complicate use, sale, or maintenance. If avoiding that outcome matters, I usually recommend a will or trust that clearly directs the interest and coordinates with how the property is titled.”
For example, if three roommates hold title under tenancy in common and one decides to sell, the remaining two have no say in that decision or who buys in.
When deciding whether joint tenancy or tenancy in common is more suited for your needs, the first step is to make sure you understand the differences between both of these co-ownership options. Choosing to own as tenants in common vs. joint tenancy requires knowledge of both choices.
According to Troy Robillard of Premiere Plus Realty in Fort Myers, Florida, no matter your circumstance, you will need to consider all the advantages and disadvantages of each structure as well as consult experts. He says, "Whether you're a married couple, business partners, or investors, selecting the appropriate ownership structure requires careful consideration of your goals and preferences. Consulting with a legal professional or real estate expert can provide invaluable guidance tailored to your unique circumstances, ensuring you make informed decisions that align with your long-term plans."
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