Key Takeaways

• Tenants in common (TIC) each hold an undivided fractional interest in the entire property, with equal rights of possession unless a written agreement provides otherwise — California Civil Code sections 685 through 689 establish the default rules.
• Any TIC owner has an “absolute” right to partition under Code of Civil Procedure section 872.210 unless that right has been validly waived by a binding agreement.
• A TIC owner can encumber only their own undivided interest, not the interests of the other cotenants — a fact lenders frequently misunderstand.
• California courts use accounting principles to allocate contributions (mortgage, taxes, insurance, repairs) and offsets (fair rental value where one cotenant has exclusive possession) when TIC disputes go to court.
• Buyouts between TIC cotenants can resolve disputes without partition litigation; the Partition of Real Property Act (Code of Civil Procedure sections 874.311 through 874.323) now creates a structured buyout right when a partition is filed.

Tenants in Common Dispute in California: Your Legal Rights and Options

Tenancy in common is a common way Californians end up owning property together. Siblings inherit a family home in equal shares. An unmarried couple splits the down payment unevenly. Friends pool resources for a Bay Area duplex. Investors buy a small income property together. Each owner takes title as a tenant in common, often without ever signing a TIC agreement that spells out how decisions get made.

Then a dispute arises. One cotenant wants to sell; another refuses. One stops contributing to the mortgage. One occupies the property to the exclusion of the others. The rents disappear into one cotenant’s account. The taxes go unpaid until one cotenant finally writes the check, and then the others won’t reimburse.

This guide explains your rights as a California tenant in common, the legal tools available when disputes arise, and the practical paths forward.

In a TIC dispute? Time and clarity work in your favor.

Bay Legal, PC handles tenant-in-common disputes and partition actions throughout California. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

The basic rules of California tenancy in common

California Civil Code sections 685 through 689 set the default framework for concurrent ownership. The key principles for tenants in common:

• Each cotenant owns an undivided fractional interest in the whole property.
• Each cotenant has an equal right to possession of the whole, regardless of the size of their fractional interest.
• Fractional interests are presumed equal unless the deed says otherwise.
• A cotenant can sell, gift, or devise their fractional interest without the consent of the others.
• Death of a cotenant does not pass the interest to the other cotenants — it passes through the decedent’s estate (probate or trust).

These default rules can be modified by a TIC agreement, condominium CC&Rs, partnership agreement, or other binding contract. Without such an agreement, the defaults govern.

When one cotenant wants to sell and the other refuses

This is the classic TIC dispute. California law gives the cotenant who wants to sell several tools:

Negotiated buyout

The simplest resolution: one cotenant buys out the other at an agreed price, sometimes informed by a third-party appraisal. Many TIC disputes resolve here, especially where the cotenants want to preserve a relationship.

Voluntary sale

If all cotenants agree, the property is listed and sold on the open market, with proceeds distributed according to the cotenants’ respective shares (after accounting for the contributions and offsets discussed below).

Partition action

If negotiation fails, any cotenant can file a partition action under Code of Civil Procedure section 872.210. The right to partition is described in California case law as “absolute,” subject to limited waiver exceptions. The Partition of Real Property Act at Code of Civil Procedure sections 874.311 through 874.323 governs partition of tenancy-in-common real property and creates a structured buyout right for non-petitioning cotenants based on a court-supervised appraisal.

Can one TIC owner take out a loan without the others’ consent?

A cotenant can encumber their own undivided interest, but they cannot encumber the interests of the other cotenants without consent. In practice, this means most institutional lenders will not lend against a single TIC fractional interest because the lender’s security is awkward — it can attach only to the borrower’s fractional interest, and foreclosing on a fractional interest gives the lender an unattractive position.

Some lenders in California (particularly in San Francisco, where fractional TICs are common) do offer fractional TIC loans, but the underwriting and pricing reflect the unusual collateral position. If a cotenant has signed for a loan that purports to encumber the entire property without the other cotenants’ signatures, that loan is generally limited to the signing cotenant’s interest.

San Francisco fractional TICs are different. In San Francisco, condominium conversion has historically been limited, and “fractional TIC” structures with individual loans are a long-established alternative. These properties typically come with detailed TIC agreements that meaningfully modify the default California rules. If you own or are buying into a San Francisco fractional TIC, read the TIC agreement carefully — and have a California real estate attorney review it before you sign.

Have a TIC agreement you’re not sure how to interpret?

Bay Legal, PC reviews TIC agreements and advises on rights and obligations throughout California. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

The accounting between cotenants

California recognizes that cotenants often contribute unequally over time. When a dispute goes to court — or even when the cotenants are negotiating a buyout — the accounting addresses:

• Mortgage principal and interest payments.
• Property tax payments.
• Insurance premiums.
• HOA dues.
• Major repairs and capital improvements (sometimes treated differently from routine maintenance).
• Rents collected from third parties.
• Fair rental value offsets where one cotenant has had exclusive possession through ouster of the others (Hunter v. Schultz (1966) 240 Cal.App.2d 24).
• Reasonable property management costs.

The general rule: a cotenant who contributes more than their proportional share for necessary expenses is entitled to contribution from the others. A cotenant who exclusively occupies the property after excluding the others may owe the others their share of fair rental value. The cotenant who just chose not to live there usually does not owe rent.

Documentation makes or breaks the accounting

Cotenants who have kept records — bank statements, canceled checks, contractor invoices, property tax bills — generally do far better in TIC accountings than cotenants who have not. If you anticipate a future dispute, start preserving documentation now. Even informal records (text messages, emails, Venmo histories) can matter.

How a buyout between tenants in common works

A TIC buyout can be structured in several ways:

• Negotiated buyout: the cotenants agree on a value, often informed by an appraisal, and one cotenant cashes the other out.
• Appraisal-based buyout: the parties agree to be bound by a neutral appraisal, with a clear procedure for selecting the appraiser.
• Litigation-driven buyout: under the Partition of Real Property Act, a non-petitioning cotenant has a right to buy out the petitioning cotenant’s interest at appraised value before any forced sale (Code of Civil Procedure section 874.317).

The structure matters. A well-drafted buyout agreement typically addresses how mortgage liability is handled, who pays closing costs, whether existing tax liens are paid off at closing, and how the new title is recorded. A California real estate attorney can paper the deal so the buyout actually closes and the parties walk away clean.

Want a clean exit from a co-ownership that has run its course?

Bay Legal, PC structures TIC buyouts and negotiates resolutions throughout California. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

Frequently Asked Questions

What are my rights as a tenant in common?

Each TIC owner has an undivided fractional interest in the entire property, an equal right of possession of the whole, and the ability to sell or transfer their own fractional interest. You have the right to seek partition under Code of Civil Procedure section 872.210 if the cotenants cannot agree. The right to an accounting protects you when contributions have been unequal.

Can one TIC owner take out a loan without the others’ consent?

Only against their own fractional interest, and only if a lender will accept the unusual collateral. Most institutional lenders require all cotenants to sign for a loan secured by the entire property. A cotenant cannot unilaterally place a lien on the others’ interests.

What is an accounting of contributions between cotenants?

A California court (or a buyout negotiation) addresses who paid what for the property over the period of co-ownership. Contributions for necessary expenses generally create a right to contribution; exclusive possession after ouster generally creates a fair-rental-value offset. The mechanics come from cases like Hunter v. Schultz and Estate of Hughes (1992) 5 Cal.App.4th 1607.

How does a buyout between cotenants work?

Either by private negotiation (often informed by an appraisal) or, if litigation is filed, through the Partition of Real Property Act’s structured buyout procedure at Code of Civil Procedure section 874.317. A California real estate attorney can structure either path to ensure the deal closes and the title transfers cleanly.

Do I need a tenants-in-common agreement?

Strongly recommended, especially when you are buying property with someone you have not co-owned with before. A TIC agreement can address contributions, occupancy, decision-making, dispute resolution, and exit mechanisms before they become flashpoints. Talk to an attorney about your TIC agreement before you sign the purchase contract.

Disclaimer

This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Reading this article and contacting Bay Legal, PC does not create an attorney-client relationship. The information here is specific to California law, which changes over time, and your situation may involve facts that change the analysis. If you have a real estate question that matters to you, speak with a licensed California attorney about your specific circumstances.