Tenants In Common Deed Language

What You Actually Need to Know About Tenants In Common Deed Language

Most people think a tenants in common deed is just a matter of ticking a box on a standard transfer form. It isn't. The language you put into that deed controls everything that happens after — the sale, the mortgage, the probate, and especially the headaches when one co-owner dies or wants out. I have seen more closed deals fall apart over sloppy TIC deed language than any other single drafting error. Not because the concept is hard. Because people copy-paste old language without checking whether it actually matches what they are trying to do.

Getting the Tenants In Common Deed Language Right

Let me start with the mechanics, then explain why most templates get it wrong. A proper TIC deed needs to include four elements in the granting clause itself. First, the names of all co-owners. Second, the phrase "as tenants in common." Third, the specific undivided interest percentage for each owner. Fourth, a statement that the interests pass to each owner's estate upon death rather than to the surviving co-owner by right of survivorship. Here is a template I have used repeatedly:

“Grantor hereby conveys to Grantee A, a married person, as to his separate interest, an undivided sixty percent (60%) interest, and to Grantee B, an unmarried person, as to his separate interest, an undivided forty percent (40%) interest, as tenants in common.” The separate interest language matters if the owners are married. Without it, some states will automatically presume community property or joint tenancy, which defeats the whole purpose of structuring a TIC arrangement in the first place. Most county recorder offices will accept a deed that just says "to A and B as tenants in common" without the percentages. It works. But it creates problems later. When one owner dies and their heirs contest the estate, the missing percentage breakdown becomes the exact question everyone argues about. I had a client last year whose brother claimed he owned 55 percent instead of the 50 percent the deed implied. The court had to appoint a referee to determine intent. That cost us eighteen months and about twelve thousand dollars in legal fees. If the original deed had stated the percentage explicitly, none of that would have happened.

Another detail people miss: the deed should include a severability clause. Not the same thing as a partition action clause, which is different. A severability clause says that if one provision is found invalid, the rest of the deed still stands. Without it, a single poorly worded sentence can sometimes void the entire conveyance depending on how the local courts interpret the language. I include this in every TIC deed I draft now. It takes ten seconds to add and saves days of remedial filing if something goes sideways. Here are the other phrases and clauses that belong in the deed, in order of importance:

• Consideration clause — State the actual exchange amount. Even if it is one dollar, write it. Recording fees are often calculated on consideration, and some counties will reject a deed that appears to be a gift if no consideration is stated.
• Legal description of the property — Lot and block from the subdivision map, or metes and bounds. Never reference just the street address. The address does not convey property. The legal description does.
• Survivorship disclaimer — This is critical. Some deeds accidentally include language that implies joint tenancy with right of survivorship. If you want tenancy in common, the deed must explicitly disclaim any right of survivorship between the co-owners.
• Marginal notation — Some jurisdictions require a notation on the margin indicating the type of co-ownership. Check your county recorder's requirements before you file.

One thing I want to be honest about: TIC deed language alone does not solve the problem of what happens when one owner wants to sell their interest. Tenancy in common gives each owner the right to partition the property at any time. This is not a bug. It is the defining feature. If you are buying property as TIC with someone you do not fully trust, you need a separate co-ownership agreement that restricts partition rights and sets buyout procedures. The deed and the agreement are two different documents that serve two different purposes. Mixing them up is a common mistake that leaves owners exposed. The workaround I use when I have clients who want TIC ownership but also want to limit partition risk is to record the deed as normal, then immediately execute a recorded restriction agreement that requires mutual consent before any sale or partition action. It is not ironclad in every state. Some courts will still force a partition regardless of a private agreement. But it gives you leverage and a clear paper trail if you end up in court. Download links for basic TIC deed templates are everywhere online. Most of them are fine for simple two-party transactions between relatives. When the ownership percentages are unequal, when one owner is an entity like an LLC, or when there is any possibility of a future dispute, spending a few hundred dollars on a real estate attorney to draft the language is cheaper than fixing it later. I have seen people try to save three hundred dollars on a template and then spend thirty thousand dollars untangling the consequences.

The recording process itself usually takes a few days to a week depending on the county. Some jurisdictions allow electronic recording now, which cuts the timeline down significantly. Call your county recorder's office and ask about e-recording before you mail anything. It will save you at least two weeks.