Legal Definitions - cotenancy

Cotenancy refers to a legal arrangement where two or more individuals simultaneously hold ownership or an interest in the same property.

This means that multiple people share rights and responsibilities concerning a single asset or piece of real estate at the same time. The specific nature of their shared ownership (e.g., how their shares are divided, what happens if one owner dies) can vary depending on the type of cotenancy established, but the fundamental concept is concurrent ownership by multiple parties.

Here are some examples illustrating cotenancy:

• Inherited Family Property: Imagine two adult siblings, Sarah and Tom, who inherit their parents' vacation cabin after their passing. The deed to the cabin is transferred to both of their names. In this scenario, Sarah and Tom are cotenants because they simultaneously hold an ownership interest in the same vacation cabin. They share the title and the associated rights and responsibilities for the property at the same time.

• Business Partners Owning Commercial Real Estate: Two business partners, Maria and David, decide to purchase a commercial building together to operate their respective businesses and rent out additional office space. The property deed lists both Maria and David as owners. They are cotenants because they both hold a simultaneous ownership interest in the same commercial building, sharing the title and the financial obligations and benefits associated with it.

• Friends Co-owning a Boat: A group of three friends, Alex, Ben, and Chloe, decide to pool their money to buy a sailboat for recreational use. The boat's registration and title list all three of them as owners. Alex, Ben, and Chloe are cotenants because they each possess a simultaneous ownership interest in the same sailboat, collectively holding the title to the vessel at the same time.