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What is an Undivided Interest?

  • "An undivided interest is a fractional ownership of the whole and not a specified part"

  • "Undivided interest is an ownership right to use and possession of a property that is shared among co-owners, with no one co-owner having exclusive rights to any portion of the property."


Source: Dictionary of Real Estate Terms, Friedman et Al and Encyclopedia of Mortgage and Real Estate Finance, Newell et Al.

What is an Undivided Interest?

For example, ten co-owners form a tenancy in common and purchase a 100-acre tract of land. Each co-owner obtains an undivided interest in the property. All decisions as to the use and disposition of the land are made collectively by all co-tenants. No one co-owner may unilaterally mortgage, develop or sell a portion of the tract.