Tenants in Common
By: Christopher J. Charles, Esq.
There are several ways to hold title to real property in Arizona: tenants in common; joint tenancy with right of survivorship; community property with right of survivorship; and as community property. This article focuses on real property held at tenancy in common. In a tenants in common scenario, two or more people or entities retain joint ownership of the real property. Unlike community property, the parties need not be married, and an unlimited number of parties may share in the ownership of the real property. Each tenant in common owns an undivided fractional interest in the estate and the interests may be disproportionate, e.g., 20% and 80%; 60% and 40%; 20%, 20%, 20%, and 40%, etc. Each tenant’s share can be conveyed, mortgage, or devised to a third party. Also, each tenant has its own tax basis.