Legal Definition of Tenancy in common:  The possession of property by two or more people wherein each party possesses an undivided interest in the entire property. This is different from a situation in which each party owns a designated portion of the property, such as land | Discover the legal definition of tenancy in common for business owners. Learn how this arrangement allows flexible ownership and the potential drawbacks to consider. Seek the advice of a qualified attorney before making any decisions. Click to learn more