Legal Question in Real Estate Law in California

As you probably know, "tenants in common" is a way for two or more people to hold title to a piece of real estate. People can become tenants in common without any agreement between them; for example, by inheriting the property as co-owners. When people, especially strangers, acquire real estate together for investment purposes, etc., it is commonplace for them to draw up and enter into a contract of some kind to define their rights, responsibilities, expectations, how the property will be managed and when and how it will be sold, and so on. Failure to have a well-written agreement is a frequent cause of disputes and misunderstandings among co-owners of property.

Although it's certainly possible that an agreement between the tenants in common will be the cause of liability between the co-owners, much more often the liability will arise out of the fact of being co-owners rather than the agreement as such. The effect of the agreement is not to create the liability; it is to pin the liability on the proper co-owner!

If you have any hesitancy about co-owning property as a tenant in common, or as a joint tenant, you should avoid the co-ownership. If you are going to be a co-owner, by all means have a well-drafted contract among yourselves.