Holding Title As Tenants In Common

4 Replies

I am reading the book, Building Wealth One House At A Time, and came across “Holding title as tenants in common” and was wondering if anyone has any experience with purchasing property this way? And if you could share some wisdom and insight.

Tenancy in common... one way of owning a percentage of a subject property with co-owners (1% 99%; 50% 50%; 25% 25% 50%; etc.) and also ensures that the interest you own passes to your estate/heirs upon your death rather than passing to the surviving co-owners.

One negative is that your interest is subject to attachment by judgment creditors with no additional action required.

If you have specific questions regarding this form of ownership, feel free to ask.

@Tom Gimer - I do have a question regarding the process. I have two sisters that are partnering with me and instead of forming an LLC and getting a commercial loan with a 20 year amortization schedule and 5 year balloon payment and possible having loan rate change at that time (up or down, depending on the market) it's my understanding that we could do a conventional loan with Tenancy in Common with a 30 year fixed rate loan. But my question is in what order do we get the Tenancy In Common on the paper work?

Thanks for your help.

@Mary St.Clair The title company handling the acquisition will ask you how you wish to hold title. You would answer that you want to hold as tenants in common and provide the specific percentages you've agreed upon. The deed prepared would identify T/C and the ownership percentages. If the deed is silent as to percentages, the 3 owners would each own 1/3.

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