Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA (1999) where adopted, but confirm state exceptions for specific recorded instruments.

Do I need a notary to record the deed?

Most states require a notarized acknowledgment on a deed before recording; check the county recorder’s rules where the property is located to confirm exact requirements.

How do I handle unequal contributions?

Document each party’s capital contribution and whether contributions are loans or capital; state buyout valuation methods and repayment rules to avoid later disputes.

What happens on an owner’s death?

Tenancy in common interests typically pass under the decedent’s will or state intestacy laws, not by survivorship, so estate planning coordination is advisable.

Can a co-owner force a sale of the property?

Yes. A partition action may compel sale or physical division in some jurisdictions; include buyout or mediation clauses to reduce this risk.

How long should I retain executed agreements?

Keep originals for the agreement’s term plus at least three years; retain tax and real estate records longer as required by IRS rules and state laws.

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Tenancy in Common Agreement

Tenancy in Common Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What a Tenancy in Common Agreement Is and When It Applies

A Tenancy in Common Agreement documents shared ownership of real property where each co-owner holds an identifiable share that can be unequal and freely transferred. The agreement describes each party's ownership percentage, contribution, rights to use the property, cost and revenue allocations, and procedures for sale, partition, or buyouts. Unlike joint tenancy, tenancy in common does not create a right of survivorship; each interest passes according to the owner's will or state intestacy rules. A clear written agreement reduces disputes, clarifies tax and mortgage responsibilities, and facilitates property transfer or refinancing.

Why a Written Tenancy in Common Agreement Matters (Legal and Practical)

A written Tenancy in Common Agreement clarifies ownership percentages, expense allocation, and transfer rights while reducing litigation risk. Electronic execution is generally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and the Uniform Electronic Transactions Act (UETA, 1999) where adopted; verify any state-specific exceptions such as wills or certain court filings.

Typical Parties and Professionals Involved

Involve counsel or title professionals when drafting complex provisions, allocating tax items, or preparing for recording and financing.

Individual co-owners sharing title and expenses, often family members or private investors.
Real estate investors and syndicates allocating unequal ownership percentages and rental revenue.
Attorneys, title companies, and lenders who review, record, or rely on the ownership terms.

Core Sections to Include in a Professional Agreement

A complete Tenancy in Common Agreement covers ownership details, financial responsibilities, use and occupancy rules, transfer mechanics, dispute resolution, and administrative procedures.

Parties and Interests

Identify each owner by full legal name and set the exact ownership percentage or fractional interest for the record and tax reporting purposes.

Property Description

Provide the full legal property description, address, and parcel ID to avoid ambiguity when recording the deed or handling title issues.

Contributions & Expenses

Specify initial capital contributions, ongoing expense allocation (taxes, insurance, maintenance), and the method for reimbursing advances or capital calls.

Use and Occupancy

Define permitted uses, occupancy rules, short-term rental policies if any, and procedures for resolving conflicting uses or scheduling.

Transfers and Buyouts

Describe rights to sell, right of first refusal or consent thresholds, valuation method for buyouts, and transfer notice requirements.

Dispute Resolution

Include mediation and arbitration clauses, partition waiver or consent terms, and the governing law to limit costly litigation.

Essential Information Required in the Agreement

Owner Name: Full legal name

Ownership Share: Exact percentage

Property ID: Legal description

Effective Date: MM/DD/YYYY

Consideration: Cash or noncash value

Signatures: Signed and dated

Step-by-Step: Completing the Agreement

Follow these steps to prepare, execute, and record a Tenancy in Common Agreement.

01

Gather Records: Collect deed and title information
02

Draft Terms: Specify shares, expenses, and transfer rules
03

Review with Counsel: Confirm tax and recording effects
04

Sign and Record: Execute, notarize if required, and record

How to Configure an Electronic Signing Workflow

Set up a repeatable eSigning workflow for consistent execution and record retention.

Field	Configuration
Signer Order	Simultaneous or sequential signing
Authentication	Email + SMS or stronger as needed
Template Settings	Pre-fill owner fields and required checks
Audit Trail	Enable timestamps and IP logging

Where to Send and How to File the Final Agreement

After execution, follow these routing steps to ensure the agreement is effective and discoverable.

Deliver Copies: Provide each owner an executed copy
Record Deed: Record deed and any amendment as required
Notify Lenders: Inform mortgage holders if relevant
Store Records: Keep executed PDF and audit trail

Digital Signing Considerations and Platform Needs

Ensure the platform complies with ESIGN and UETA and supports secure storage and export of the signed record and audit trail.

File Formats: PDF and DOCX support
Integrations: CRM and cloud storage connectivity
Authentication: Email, SMS, or KBA options

Timing and Recording Expectations

Record and communicate key actions promptly to protect ownership rights and preserve priority with respect to third parties.

Recording Window:

Record deed within days to weeks

Mortgage Notification:

Notify lender immediately if required

Tax Reporting:

Update for property tax and reporting

Title Insurance:

Order endorsement or update promptly

Amendments:

Execute and record amendments quickly

Common Errors to Avoid When Preparing the Agreement

Failing to state exact ownership percentages, creating ambiguity and tax disputes later.
Using informal property descriptions rather than the recorded legal description for recording.
Omitting transfer mechanics or buyout formulas, which often leads to litigation or partition actions.
Neglecting to update mortgage lenders and title insurance, risking lien priority problems.

Potential Legal and Financial Risks

Unclear Shares: Title disputes

Failure to Record: Priority risk

Tax Misreporting: Backup withholding

Partition Action: Forced sale

Invalid Signatures: Unenforceable agreement

Mortgage Defaults: Acceleration risk

Real-world Examples of Electronic Execution and Recordkeeping

These brief examples show how organizations completed property transactions and managed execution at scale.

Martin Properties

Small property manager executed tenancy documents online to close co-ownership faster.

Used mobile and offline signing options for field agents.
Resulted in complete, auditable records accessible to owners and counsel for title and refinance processes.

Optica Ventures LLC

Investment group standardized a tenancy template for multiple co-owned assets.

Templates reduced drafting time between partners.
Standardization improved consistency across deals and simplified title company review when recording deeds.

How Tenancy in Common Compares with Other Co-Ownership Forms

Compare tenancy in common to common alternatives to select the right ownership structure for tax, transferability, and survivorship goals.

Criteria	Tenancy in Common	Joint Tenancy	Tenancy by Entirety
Right of Survivorship			yes (married only)
Transferability	freely transferable	severance may break jt	generally restricted
Use for Investors		less common
Estate Passing	by will/intestacy	passes to surviving joint tenants	passes to spouse

eSignature Vendor Comparison for Executing Tenancy in Common Agreements

Compare common vendor price points and core capabilities when selecting an eSignature provider for real property agreements; signNow is listed first per vendor order rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Tenancy in Common Agreements

Answers to common execution, recording, and dispute questions for Tenancy in Common Agreements.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA (1999) where adopted, but confirm state exceptions for specific recorded instruments.
Do I need a notary to record the deed?
Most states require a notarized acknowledgment on a deed before recording; check the county recorder’s rules where the property is located to confirm exact requirements.
How do I handle unequal contributions?
Document each party’s capital contribution and whether contributions are loans or capital; state buyout valuation methods and repayment rules to avoid later disputes.
What happens on an owner’s death?
Tenancy in common interests typically pass under the decedent’s will or state intestacy laws, not by survivorship, so estate planning coordination is advisable.
Can a co-owner force a sale of the property?
Yes. A partition action may compel sale or physical division in some jurisdictions; include buyout or mediation clauses to reduce this risk.
How long should I retain executed agreements?
Keep originals for the agreement’s term plus at least three years; retain tax and real estate records longer as required by IRS rules and state laws.

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