Tenancy-in-common does not have a right of survivorship. When a tenant in common dies, their interest in the property becomes part of their estate, and can be dealt with in their will, or if they die without a will, it goes to their heirs according to law.
Tenancy in common is typically used in business partnerships or extended family holdings (siblings sharing ownership of a camp for example). Tenants in common, like joint tenants, do not each have individual automatic rights to use the property or any part of it. However, tenants-in-common can sell or mortgage their interests separately.
The ability of tenants in common to deal separately can create trouble. For example, if your partner dies, and his wife inherits his interest, will that impair the operation of the business? If your brother mortgages his interest in the family cottage, and the bank moves under power of sale, who will buy? Because of these issues, other forms of title, such as corporations or trusts, may be better. If title remains in-common as individuals, a formal legally valid agreement registered on title is the best protection. Other documents such as a partnership agreement not on title, is minimal protection, but better than nothing. Consult your lawyer.
Residential
