Tenants in common is a real estate term that refers to more than one person purchasing a single property together. This different than your standard joint property ownership., In that the property is titled to each person involved in the transaction, although they may own different percentages of the property.
There is no limit on how many people can be involved in this type of agreement, though it must be at least two. Also, the reasons for entering this type of arrangement are not of concern. Literally anyone can enter into a common purchase of this type, regardless of their relationship to one another or who intends to actually make use of the property.
For example, if John wants to purchase a home but does not have the capacity of caring or paying for it on his own, he may purchase it along with three or four others who will live in the home and help him with the bills and maintenance.
In this type of situation, everyone involved will have legal access to the home, but John may hold 50% of the title while the others each hold 25%. They will also share responsibility and expense for upkeep over time.
In the event someone on the tenants in common deeds out of the arrangement, they can be bought out by the others who want to remain. Also, the property can always be sold with the profits being distributed among all members of the agreement.
This type of agreement is also becoming very popular to investors. A property owner can enter the agreement with multiple investors as a business arrangement for everyone to make money in the end. None of the co-tenants may actually live in or daily utilize the property owned.
This type of agreement can be tricky in the event of a falling out between co-tenants. If you are considering entering this type of agreement, you may want to talk with legal counsel to thoroughly analyze and understand the terms of the deal and what your responsibilities will be in the long term.