What is the main difference between tenancy in common and joint tenancy regarding co-ownership?

In a tenancy in common, each co-owner holds an undivided interest in the property, which means they share ownership equally—or as specified—despite having distinct shares. The critical feature of tenancy in common is that upon the death of one co-owner, their respective interest in the property does not go to the other co-owners but rather passes to their heirs according to their will or state inheritance laws. This allows for the property to potentially remain divided and continue having different ownership portions, which is essential for estate planning and inheritance purposes.

The other options highlight characteristics of joint tenancy or misunderstandings about tenancy in common. For instance, joint tenancy includes the right of survivorship, meaning when one owner dies, their interest directly transfers to the surviving joint tenants rather than heirs. Also, while tenancy in common interests potentially lead to equal distribution upon death to heirs, joint tenancy specifically does not allow for unequal ownership interests since all tenants must share the same percentage of ownership and rights to the property. Thus, the main distinguishing factor is how interests are passed upon death, making option C the correct statement.