What does tenancy in common refer to in relation to property ownership?

Tenancy in common is a specific form of property ownership characterized by each owner having an individual interest in the property. This means that although multiple individuals may have ownership rights to the same piece of property, each person's interest is distinct and can be sold, transferred, or bequeathed independently of the others. This arrangement allows for flexibility in ownership interests, as they do not have to be equal; one tenant in common could own a larger share than another.

For example, if three people own a property as tenants in common, one might own 50% of the property, while the other two might each own 25%. This structure does not require the interests to be equal, and each owner retains the right to control their share of the property, including selling or transferring that interest without the consent of the other owners.

The other options do not accurately describe tenancy in common. While joint ownership typically refers to some level of equal sharing of interests, a rental agreement pertains to leasing rather than ownership. Additionally, the process for transferring property rights after death is typically covered under wills and estates law rather than describing the nature of ownership structures like tenancy in common.