A Comprehensive Guide to Each Type of Co Ownership Agreement in Real State

Are you considering investing in real estate with a business partner or family member? Or perhaps you want to purchase a property with a group of friends for vacation purposes? Whichever the case may be, co-ownership agreements are vital for a smooth and successful real estate partnership.

However, with multiple types of co-ownership agreements available, it can be overwhelming to determine which one is best for your specific situation. That’s where this comprehensive guide comes in.

In this guide, we will dive into each type of co ownership agreement. Read on.

Tenancy in Common (TIC)

Tenancy in Common allows two or more parties to own property together, where each owner has an undivided interest in the property. One of the key features of a TIC agreement is that the ownership shares do not have to be equal, and owners can sell their interests without the consent of the other co-owners.


It has flexibility in ownership percentage. Also, the owners can dispose of their shares independently.


Owners may disagree on the property’s use or management. The creditors of any owner can target the owner’s share.

Joint Tenancy with Right of Survivorship (JTWROS)

Joint Tenancy is a form of co-ownership where all owners hold an equal share of the property, and the property automatically passes to the surviving owners upon the death of one owner. The ‘right of survivorship‘ distinguishes it from other co-ownership types, bypassing the probate process.


It avoids probate. It has equal rights to the property among co-owners.


It requires four unities: time, title, interest, and possession. Also, one owner cannot sell or pass on their share without breaking the joint tenancy.

Tenancy by the Entirety (TBE)

This type of ownership is exclusive to married couples and, in some places, domestic partners. Like JTWROS, it features the right of survivorship, but it also offers protection from creditors for one spouse’s debts (unless both are responsible for the debt).


It provides survivorship rights. It also offers creditors’ protection.


It’s only available to married couples. Also, both partners must agree to any sale or encumbrance of the property.

Community Property

Recognized in some states, community property allows married couples (and in some locations, domestic partners) to own property together, where each person owns a 50% undivided interest. States with community property laws may also allow the option of the right of survivorship.


It’s a simple and equal division of the property. It also can be beneficial for tax purposes upon the death of a spouse.


It is limited to spouses in certain states. All community property is subject to the debts of either spouse.

Each of these agreements has its advantages and drawbacks, which is why reading the terms and conditions is important, especially on investment contributions. Consulting a lawyer can be beneficial in dealing with these, they can also provide useful info such as Tenants in Common vs Joint Tenants.

Choose a Co Ownership Agreement Today

Understanding the nuances of these co ownership agreements is crucial before entering into any real estate partnership. Each type of agreement offers a unique blend of benefits and drawbacks. It is influenced by factors such as the co-owners’ relationship, estate planning goals, and protection from creditors.

Consulting with a real estate attorney can provide personalized advice and ensure that the agreement aligns with your objectives. This provides a solid foundation for property co-ownership.

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