When co-owning property, what exactly do I own when I buy a home? is determined by the specific ownership type chosen. Tenants in Common allow individual, unequal shares transferable to heirs. Joint Tenancy with Right of Survivorship grants equal shares with automatic inheritance to surviving owners. Tenancy by the Entirety, for married couples, offers similar survivorship rights with added creditor protection. Each form dictates shared rights to possession, income, transfer, and mortgage, alongside joint responsibilities for taxes and maintenance. A formal co-ownership agreement is crucial to protect individual rights and prevent disputes.

What Is Co-Ownership?

Co-ownership (or concurrent ownership) refers to two or more individuals owning legal title to the same property. Unlike sole ownership, co-ownership divides the “bundle of rights”—which includes the right to use, sell, lease, and transfer the property.

There are three primary forms of co-ownership, each with different implications for control, liability, and inheritance.

The Three Main Types of Co-Ownership

1. Tenancy in Common (TIC)

• Each owner holds an individual, undivided share
• Shares can be equal or unequal
• Owners can sell or transfer their share without consent from the others
• No right of survivorship—if one owner dies, their share passes to heirs

Example: Alice owns 60%, and Bob owns 40% of a condo as tenants in common. Bob can sell his share, and if he passes away, his share goes to his children—not to Alice.

2. Joint Tenancy with Right of Survivorship (JTWROS)

• Each owner holds an equal, undivided share
• Includes the right of survivorship: if one owner dies, the surviving owner(s) automatically inherit their share
• Typically must acquire the property at the same time, on the same deed

Example: A married couple buys a home as joint tenants. When one spouse dies, the surviving spouse automatically becomes the sole owner, regardless of any will.

3. Tenancy by the Entirety (TBE)

• A form of joint tenancy available only to married couples in certain states
• Includes right of survivorship and additional protections from individual creditors
• Neither spouse can sell or encumber the property without the other’s consent

Example: In a TBE state like Florida, if one spouse incurs personal debt, the property is generally protected from those creditors.

How Ownership Type Affects Your Rights

The form of ownership chosen has major consequences on your property rights, especially in the following areas:

Right to Possession

All co-owners—regardless of share—have equal rights to use the entire property. You can’t just “claim” one room or area unless there’s a written agreement.

Right to Income

If the property is rented, income must be shared based on ownership percentages—unless another arrangement is documented.

 Right to Transfer

• TIC owners can sell or gift their share independently
• Joint tenants and TBE owners must transfer the entire property together

Right to Mortgage

One TIC owner can mortgage their share only—but default may impact the whole property. Joint tenants must agree collectively.

Responsibilities Shared by All Owners

1. Property Taxes

Each co-owner is responsible for ensuring taxes are paid, even if only one is using the property. A lien could affect everyone’s interest.

2. Repairs and Maintenance

All owners are jointly responsible—unless an agreement outlines otherwise.

3. Mortgage Payments

Typically shared proportionally to ownership—but everyone is liable if the loan is joint.

What Happens If One Owner Wants Out?

This is where things can get complicated—especially without a formal agreement.

One Owner Sells or Transfers Their Share

• In a TIC, they can do so freely.
• In JTWROS or TBE, consent is required or the co-ownership may be dissolved.

Partition Action (Court Involvement)

If co-owners can’t agree, one may file a partition lawsuit to force a sale or divide the property.

Two Possible Outcomes:

• Partition in Kind – The court divides the property physically (rare in residential cases)
• Partition by Sale – The court orders a sale and divides proceeds based on ownership shares

Co-Ownership Case Study: A Real-World Scenario

Three friends (Jack, Maya, and Theo) buy a duplex as tenants in common:

• Jack: 50% share (lives in Unit A)
• Maya: 25% share (lives in Unit B)
• Theo: 25% share (lives elsewhere, wants to rent his share)

What Could Go Wrong:

• Theo rents out Unit A guests, annoying Jack.
• Jack pays for major repairs, expecting reimbursement.
• Maya wants to sell her share; Theo refuses.

Without a co-ownership agreement, this situation can escalate to legal disputes or a forced sale.

How to Protect Your Rights in a Co-Ownership Arrangement

Draft a Co-Ownership Agreement

A written agreement should include:

• Ownership percentages
• Financial responsibilities (mortgage, taxes, utilities)
• Usage rules (who lives where)
• Exit strategies (buyout terms, sale triggers)

Clarify How You Take Title

Decide if you’ll be tenants in common, joint tenants, or another structure. This should reflect your estate planning and risk tolerance.

Discuss Financing Early

Who’s responsible for the loan? If only one owner qualifies, how is equity divided?

Set Clear Expectations

Discuss:

• How expenses are shared
• Who handles maintenance and decision-making
• How disagreements are resolved

Key Takeaways for Buyers and Agents

For Homebuyers:

• Know your rights: Ownership type affects what happens if you sell, pass away, or want to move out.
• Never rely on verbal agreements—get everything in writing.
• Consult an attorney before finalizing your co-ownership structure.

For Real Estate Investors:

• Use LLCs or partnerships for large deals.
• Include a formal exit clause—most disputes arise when one partner wants out.
• Understand financing limits: Lenders typically prefer one loan, not multiple borrowers with split intentions.

For Real Estate Professionals:

• Educate clients about title options and co-ownership consequences.
• Recommend a real estate attorney for co-buyers.
• Help draft initial talking points or templates for co-ownership agreements.

Final Thoughts

Co-ownership can be a powerful tool—whether to afford a first home, grow a portfolio, or invest with others. But it’s not just about trust—it’s about structure.

Without a clear plan and legal understanding, shared ownership can lead to conflicts, lawsuits, or lost equity. The best protection? Clarity up front.