Undivided Interest

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. For example, ten investors form a Tenancy in Common and purchase a 100-acre tract of land. Each cotenant obtains an undivided interest in the property. All decisions as to the use and disposition of the land are made collectively by all cotenants. No one cotenant may unilaterally mortgage, develop, or sell a portion of the tract. A partnership tax return is filed. Each co-owner also includes a share of the income, loss, gain, etc., in his/her own personal income tax return.

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. Compare with Partition.
Example: Ten investors form a Tenancy in Common and purchase a 100-Acre tract of land. Each cotenant obtains an undivided interest in the property. All decisions as to the use and disposition of the land are made collectively by all cotenants. No one cotenant may unilaterally mortgage, develop, or sell a portion of the Tract.

The interest or right in property owned by tenants in common, joint tenants, or tenants by the entirety, whereby each tenant has an equal right to make use of and enjoy the entire property. See 63 F. Supp. 220, 223. An "undivided interest" derives from unity of possession, which is essential to the above tenancies. "Undivided interests" in property are to be distinguished from interests that have been partitioned, i.e., divided and distributed to the different owners for their use in severalty. See 33 Mass. 87, 98. An undivided interest may be of only a fractional share, e.g., "an undivided one-quarter interest," in which case the holder is entitled to one-quarter of all profits and sale proceeds but has a right to possession of the whole.