If you're buying property in California with a friend, sibling, business partner, or family member, tenancy in common is one of the most common ways to structure that ownership — and it's also a concept you'll see tested on the California real estate licensing exam. Here's what every future agent and co-owner should understand.
Tenancy in Common Definition
Tenancy in common is a form of co-ownership where two or more people each hold a separate, individual interest in a property. Owners are not required to hold equal shares, and each person has full independent control over their own portion — including the right to sell, transfer, or will it to anyone they choose, without needing approval from the other owners.
In California, tenancy in common is actually the default form of co-ownership. If a deed transfers property to two or more unmarried people without specifying the ownership type, California law presumes it's a tenancy in common.
California is a community property state, which adds an extra wrinkle: married couples in California can also hold title as community property, which has different rules around survivorship than tenancy in common. The DRE exam may test you on telling these apart.
Key Features of Tenancy in Common
- Unequal ownership shares are allowed. One owner might hold 70% of a property while another holds 30% — shares don't need to be equal.
- No right of survivorship. When a tenant in common dies, their share does not automatically pass to the other owners. It passes to their heirs or according to their will.
- Independent control over your share. Each owner can sell, mortgage, gift, or will their individual share without permission from the other co-owners.
- Equal right to use the whole property. Despite owning different percentages, every tenant in common has the legal right to use and access the entire property.
- Can be created at different times. Unlike joint tenancy, owners don't need to acquire their interest simultaneously or through the same document.
Real-World Example
Imagine three siblings inherit a vacation property in Lake Tahoe from a parent. They decide to hold it as tenants in common, each owning an equal one-third share. A few years later, one sibling decides to sell their third to a cousin. Because tenancy in common doesn't restrict transfers, this is fully within their right — no permission from the other two siblings is required. The cousin now owns one-third of the property as a tenant in common with the remaining two original siblings.
This flexibility is one of the main reasons families and business partners in California often choose tenancy in common over other ownership structures — each person's share is treated as their own individual asset.
Tenancy in Common vs. Other Ownership Types
Tenancy in common is one of several ways to co-own property in California — joint tenancy and community property are two others, each with very different rules around survivorship and transferability. If you're deciding between tenancy in common and joint tenancy specifically, see our full side-by-side comparison of how the two differ.
Frequently Asked Questions
What happens to a tenant in common's share when they die in California?
Their share passes to their heirs or according to the terms of their will — it does not automatically transfer to the other co-owners.
Do tenants in common have to own equal shares?
No. Tenants in common can hold any percentage of ownership, and those shares don't need to be equal among the owners.
Can a tenant in common sell their share without the other owners' permission?
Yes. Each tenant in common has full independent control over their own share and can sell, transfer, or will it without needing approval from the other co-owners.
Is tenancy in common the default type of ownership in California?
For unmarried co-owners, yes. If a deed conveys property without specifying the ownership type, California law generally presumes it's a tenancy in common.
How is tenancy in common different from community property?
Community property only applies to married couples in California and includes a right of survivorship in some forms. Tenancy in common has no right of survivorship and can be used by any group of co-owners, married or not.
If you want to practice questions on this topic and everything else covered on the California real estate licensing exam, the A+ Simulator gives you unlimited practice with detailed answer explanations so concepts like this stick before test day.