How To Write a Tenant in Common Agreement

Standardized Legal Documents How To Write a Tenant in Common Agreement

Tenant in Common Agreement From A to Z

People often opt for purchasing a property with another person because of lower expenses. There are several co-ownership types, but tenancy in common seems to be the most popular. The best way to regulate the relationship between the co-tenants is to compose a supporting legal document according to the governing laws.

If you aren’t familiar with the tenants in common agreement, this article will help you understand all its ins and outs. Read our guide and get the ultimate tips on writing any contract with DoNotPay without overpriced legal services!

What Is the Purpose of a Tenancy in Common Agreement?

A tenants in common agreement is a contract that defines an arrangement between two or more entities sharing the ownership of a specific property. It permits each party to use the entire property and sell or transfer their separate ownership interest. 

The purpose of this contract is to outline all co-ownership details and rights of each party. It ensures a fair relationship between the signers and helps them solve potential disputes without ending up in the courtroom.

Are Tenancy in Common and Joint Tenancy the Same?

Before you decide to purchase an estate, it’s of utmost importance to decide whether you want to enter into a tenancy in common or joint tenancy agreement. Knowing what these terms represent and what possibilities they offer will help you opt for a more suitable arrangement. 

The main differences between these co-ownership types are shown in the table below:

CriteriaTenancy in CommonJoint Tenancy

Tenants in common have full access to the property, but each of the tenants is entitled to a different percentage of it

All co-owners share the ownership of the entire property
Ownership transfer and managementTenancy in common allows co-tenants to leave the ownership interest to their heirs in their willWhen one of the joint tenants dies, their property interest goes directly to the remaining co-owner(s) even if the deceased party has a will. This rule is called the right of survivorship. The only way to avoid it is to terminate the joint tenancy before death and enter the tenancy in common agreement
Permitted number of co-ownersNo specific limit

Four co-owners

Time of entering the agreementThe parties aren’t required to enter the agreement at the same time. The independent co-owners can get their property interest years after the original ownership setup

All the parties involved must sign the contract at the same time, in a single transaction

The option is recommended for
  • Unmarried couples
  • Couples who have children from previous marriages
  • Siblings
  • Parents and children
  • Business partners
  • Married couples without children

What Elements Should a Tenancy in Common Agreement Cover?

Besides general information about the parties, a valid tenancy in common agreement should cover the following sections:

  1. Property division details according to maintenance duties and usage rights
  2. Outline of each property owner’s financial responsibilities, such as:
    • Property tax details
    • Initial deposit amount
    • Reserve accounts
    • Other costs
  3. Monthly payment and potential amount adjustments
  4. Property management tasks, including:
    • Repairs
    • Cleaning
    • Maintenance
    • Accounts receivable
    • Accounts payable
  5. Specific tenancy rules
    • Pet policy
    • Smoking policy
    • Noise policy
    • Floor covering
  6. Applicable laws
  7. Decision-making rules and procedures
  8. Defaults and remedies
  9. Dispute resolutions
  10. Rules regarding the sale of interests and group approvals of potential purchasers
  11. Signatures of the parties involved

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To use this service, follow the steps below:

  1. Open DoNotPay in any preferred web browser
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  3. Answer some questions about the details of your document

Our legal documents are drawn up according to the applicable state laws and cover all relevant disclosures. All you need to do to make them valid is sign them with the other party. If you want to have them notarized, you can also do that from our app.

You can use the same procedure for personalizing any document template from our database, including:

  1. Intent To Purchase Real Estate
  2. Promissory Note
  3. Bill of Sale
  4. General Business Contract
  5. Residential Lease Agreement
  6. Non-Disclosure Agreement
  7. Quitclaim Deed
  8. General Affidavit
  9. Non-Compete Agreement
  10. Independent Contractor Agreement
  11. Estoppel Certificate
  12. Prenuptial Agreement
  13. Custody Agreement
  14. Child Care Authorization Form
  15. LLC Operating Rules Agreement

DoNotPay Teaches You How To Compose Other Legal Documents

If you need a legal document that isn’t in our template database, don’t worry—we can still help! Our learning center contains loads of articles about drafting various contracts, a portion of them listed below:

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