In a tenancy in common, what happens to the interests of a deceased tenant?

Prepare for the BPA Business Law and Ethics Test with engaging flashcards and multiple choice questions. Each question comes with explanations to enhance understanding. Succeed in your exam confidently!

In a tenancy in common, when a tenant dies, their interest in the property does not automatically transfer to the surviving co-tenants. Instead, the deceased tenant's interests pass to their estate. This means that the deceased's share of the property is treated as part of their estate and will be handled according to the deceased's will or, if there is no will, according to state intestacy laws.

This characteristic distinguishes tenancy in common from other forms of co-ownership, such as joint tenancy, where the interest does automatically pass to the remaining co-owners due to the right of survivorship.

Understanding this aspect of tenancy in common is crucial for individuals involved in property ownership arrangements, as it influences how property rights are transferred upon death and affects planning for estate distribution.

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