PART THREE: TENANTS IN COMMON
In this form of Real Estate ownership, two or more people each own an undivided portion of the entire property. The percentage of ownership may vary greatly. This is common where persons may be may be business partners and wish to retain the property in their family rather than passing to their business partner. If one of the tenants in common dies, that interest will pass to his or her successors.
Upon the death of a tenant in common, a death certificate should be recorded, along with a deed of distribution from the Personal Representative of the decedent’s estate, to the successor or heir. Of course, in this type of ownership, it is difficult to sell only a percentage of the property to an outsider. Few outsiders would be interested in sharing ownership with individuals with whom they are not familiar. This form of ownership will pass in probate to his or her successors under the will. EXAMPLE: Tom Brown as to an undivided 25% interest; William Brown as to an undivided 25% interest; and David Black as to an undivided 50% interest.
Lat J. Celmins