Tenancy in Common in Indiana

Tenancy in common (“TIC”) is a widely used instrument for land ownership throughout the United States, but each state that employs its use defines and uses TIC differently. TIC is a device used by two or more people when they wish to co-own land. This is the most widely used device to convey land to co-owners. TIC is made whenever a landowner conveys their land to two or more people, unless it is otherwise stated otherwise in the agreement or the deed to convey the land. The agreement does not need any special words or phrases to create a TIC, just any general words used to sell or give land to another person will create TIC.

TIC allows two (or more) owners to hold separate and unequal interests in the land meaning that the owners can own different percentages of the land. For example, one owner can own 60% and the other can own 40%. Each co-owner’s interest is also undivided, meaning that each property owner has the right to sell, transfer, or borrow against their interest in the land. Additionally, each owner has a right to use of the land as a whole, not just to their percentage share. Another important right to know is that if a co-owner is making money from renting part of the property, then the other co-owner is entitled to a proportionate share of that rent.

When one tenant in common dies, they pass their interest in the land down to their heir(s), not to the other co-owner(s). There are several ways to terminate a TIC. The obvious way is for one co-owner to give or sell their share of the interest in the land to the other. You might also transfer the ownership interest wholly to a person who is not a another owner. Another way to terminate a TIC is for all co-owners to change their interests into a different co-tenancy, such as granting joint tenancy or tenancy by the entirety. The last way to terminate a TIC is to ask a court to partition the land, meaning the court will divide it up proportionally among the co-owners. If the court cannot divide it up in a practical way, then it can also force the sale of the property and divide the money from the sale proportionally based on percentage ownership interest.

If you have questions about how you hold your property and what rights that entitles you to, call the experienced attorneys at McNeelyLaw LLP today at (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.