Tenants in Common vs. Joint Tenants: The Co-buyer’s Guide to Title
Buying together? Learn what taking and holding title means, compare TIC vs JTWROS, and protect your ownership, flexibility, and clarity.
When you co-buy a home, the title structure you choose determines more than just what’s on paper. It defines your legal rights, your financial flexibility, and how easy (or hard) it’ll be to handle change down the road. The problem? Most groups make this call in a hurry — and regret it later.
At CoBuy, we’ve helped hundreds of groups work through this choice. But here’s the truth: no attorney, not even us, can tell you which structure is “right.” This is a group decision. It has to fit your contributions, your goals, and your risk tolerance. Most people make it without understanding the trade-offs — or how it fits with all the other co-ownership terms they’ll agree on. Our job is to give you the clarity, guardrails, and process to make that decision with confidence.
First principles: what “title” means (plain English)
- Title = legal ownership.
- Taking title = how the deed says you own at purchase (your “vesting”).
- Holding title = the form of co-ownership that governs rights over time — how ownership is shared, what happens when someone leaves, how taxes apply, and how decisions are made.
The deed is recorded at the county. Your vesting language — e.g., “Alice and Ben, as Tenants in Common” or “as Joint Tenants with Right of Survivorship” — sets the ground rules the moment you close. Lenders, taxes, and future transfers all key off that choice. Title insurance addresses past defects in ownership; it doesn’t decide how you co-own going forward.
The two structures most co-buyers consider
Tenants in Common (TIC)
Each co-owner can hold an unequal share (e.g., 60/25/15). Legally, each can convey their share. Practically, your mortgage, due-on-sale clauses, and your agreement will shape what’s possible. Without protections, a co-owner can sue to partition (force a sale).
Joint Tenants with Right of Survivorship (JTWROS)
All owners hold equal shares. When one dies, their share automatically passes to the survivors — bypassing probate. But in some states, certain actions can sever JTWROS, converting it to TIC. And the equal-only ownership model can clash with unequal contributions.
At-a-glance comparison
Here’s how TIC and JTWROS compare across the key factors we see most often in co-buyer groups.
How to choose (practical, not theoretical)
From our experience, patterns emerge:
- Friends pooling resources often choose TIC for flexibility.
- Unmarried couples lean toward JTWROS for survivorship, though some still pick TIC for proportional ownership.
- Investment-focused groups often need TIC for tax reporting and 1031 exchange flexibility.
Over the last six months, more than half of the groups using Co-ownerOS™ have chosen to take and hold title as Tenants in Common. That’s not because TIC is “better,” but because for many groups—especially friends or family with unequal contributions—it fits their goals and keeps options open. The rest either choose JTWROS for its survivorship simplicity or, in a smaller number of cases, other structures based on state-specific rules.
Why this decision is so often botched in the wild
In traditional residential real estate, no one really owns this decision for co-buyers. Real estate agents aren’t trained for it. Loan officers often avoid the conversation because they see risk. Title and escrow professionals rarely explain the implications—they tend to appear only at signing.
As a result, groups often get to closing without knowing exactly who is on title, how they’ve taken title, or what that means for their future. They lock in a structure that conflicts with their contributions, their plans, or both. It’s expensive to unwind later — and in the meantime, it can limit their options for refinancing, selling, or handling an exit.
Hidden pitfalls we see regularly
- Partition lawsuits (TIC): Any co-owner can ask a court to sell the property if you deadlock. Strong agreements add right-of-first-refusal (ROFR), buy-sell triggers, and mediation before court.
- Due-on-sale (both): Transferring interests can violate your loan terms unless an exception applies — coordinate with the lender.
- Accidental severance (JTWROS): Certain deeds or refis can sever JTWROS depending on state rules.
- Tax mismatches: Equal title with unequal contributions can raise gift-tax questions; rental income and depreciation reporting require alignment.
Two fast scenarios
Three friends, 60/25/15, buying a rental
They choose TIC for proportional ownership, tax reporting, and built-in ROFR to keep outsiders out.
Unmarried couple, equal contributions, want automatic inheritance
They choose JTWROS to avoid probate and ensure the survivor owns 100% immediately.
How Co-ownerOS™ keeps you out of the “decision loop”
In the wild, groups get stuck in what we call the decision loop. They pick a title structure without realizing it conflicts with other terms they want — like unequal ownership interests under JTWROS. Or they rely on an attorney who isn’t a co-ownership specialist, ending up with mismatched, incomplete documents.
Our Governance flow puts guardrails around every choice. If a decision in one area would conflict with another, you’ll see it immediately. We simplify each step with plain-language context and just-in-time guidance so your group can build consensus without backtracking.
Groups with contributions and expectations already agreed on can make this title decision in minutes. The guidance is clear, the conflicts are flagged, and everyone sees the implications before committing. When underlying questions need discussion, the system surfaces them so they’re resolved before moving forward. That transparency leads directly to non-repudiation: no one can later claim they didn’t understand or agree.
Protect the group (this is where the real safety lives)
Your title choice is step one. Step two is the co-ownership agreement:
- Exit timelines and pricing
- Dispute resolution
- Approvals for big expenses
- First rights if someone sells
Getting this right up front avoids disputes, prevents closing delays, and minimizes the need for costly fixes after the fact. It also locks in clarity for every scenario that follows — full or partial sale, voluntary or not, and even death. This is one of the core decisions that defines how the asset and its liability are structured.
In most cases, the property is the largest dollar-value asset (and liability) the group will ever take on, with joint and several mortgage liability. That’s why the title structure isn’t just a formality — it’s a financial safeguard.
Co-ownerOS™ walks you through these decisions, captures consensus, generates your agreement, supports e-signing, and keeps everything current as life changes — without a $10K legal bill.
FAQ
Why won’t my attorney just tell me which to pick?
Because the “right” choice depends on your group’s specific contributions, goals, and risk preferences. Attorneys — and us — can give you the information and guardrails, but only you can make the call.
Can we switch later?
Often yes, but expect a new deed, lender involvement, and possible tax/recording costs. Plan right upfront.
Does JTWROS avoid probate?
Generally yes for that property interest, but you still need to clear title and handle creditor/tax matters.
Can a TIC owner sell without consent?
Legally yes, but your mortgage, ROFR, and the thin market for partial interests often make it complicated.
What’s a partition action?
A lawsuit where a co-owner forces sale or division. It’s expensive and slow — good agreements aim to prevent it.
Which structure do lenders prefer?
Most accept both, but many require all owners on the note and approval for transfers.
We’re buying a rental. Anything special?
With TIC, income/expenses/depreciation typically track your percentage interest. For 1031 exchanges, properly structured TIC interests can work — get a CPA involved.
We’re married in a community-property state. Another option?
Some states offer community property with right of survivorship. If that’s you, compare that option as well.
Bottom line
Picking a title structure isn’t just about closing paperwork. It’s about protecting your investment, your relationships, and your options in the future. Co-ownerOS™ gives you the clarity, guardrails, and process to make the right call — and keep it current.