Tenants in Common (TIC)

Tenants in Common is a way of sharing ownership of property among two or more people. Each tenant holds an undivided interest in the property, and each tenant may own a different size portion of the property. Tenants in common ownership may be established in many different ways: through a will, deed, or other document of title. Today Tenants in Common (TIC) ownership has become a popular way for people to complete 1031 tax deferred exchanges when they hold title as an individual or other entity and would like to participate in a partnership or partnership style structure. Other people are using Tenant in Common structures to purchase multi-family real estate that may be suitable for a condominium (condo) conversion after a certain seasoning period.

There are other benefits to owning property as Tenants in Common as well. For people looking to diversify, TIC structures allow you to invest in larger properties, different types of investment property and different geographic markets. Perhaps you are looking to move up to institutional grade or single tenant properties with triple net lease arrangements. You may also benefit from fixed-rate, non-recourse financing with institutional terms for tenants in common owners. This type of financing with 5-10 year terms is usually not available to small, single investors. Many, perhaps most, tenants in common arrangements are created through inheritance whereby the decedent's will leaves property to intended heirs with or without specifying the size of interest that each is to receive. One of the most attractive features of a TIC structure is that acquiring an interest in investment property as tenants in common does not preclude you from buying investment property on your own in a subsequent 1031 tax deferred exchange. Returning to sole ownership is always an option should your investment preferences change.

Is the Tenant in Common Structure Flexible?

A tenants in common ownership interest can be purchased, sold, gifted, bequeathed by will, or inherited, and is subject to property taxes, gift tax, estate and inheritance taxes in the same manner as any property held in fee simple (single) ownership. Upon the death of a tenant in common, his or her interest in the property passes through inheritance as directed in the will or other estate planning documentation and does not divide among the other owners as there is no right of survivorship an important difference from joint tenancy ownership.

Tenant's rights

Each tenant has unrestricted rights of access to the property subject to the equivalent rights of the other tenants. Each tenant in common can petition for and secure a division of the property at any time. The partition usually will result in the petitioner being granted exclusive ownership of a portion of the property the court views as equivalent to his or her previous undivided interest. Or, the judge may order that the property be sold and the net proceeds divided among the tenants in the same proportion as their respective ownership interests.

Neda Dabestani-Ryba is a licensed Realtor in Maryland. She is a member of the President's Circle of Top Real Estate Professionals. She can be reached at (800) 536-3806 or visit her website for more information: http://neda.dabestani.pcragent.com/ Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

---

How To Get The Best Rental Accommodation In The Area By Using Your Capital

My report is for you to use your power to... Read More

Investment Real Estate Made Easy ? Make the Most from Each Investment Dollar

When it comes to buying investment real estate, there are... Read More

The Irish Property Market - Expensive But Worth It?

Lying on the edge of Europe facing out to the... Read More

How To Buy Real Estate - Yes, YOU CAN!

If you want to buy a house but don't think... Read More

Canal Front Homes in Venice

A bit about VeniceVenice, Florida was named by an early... Read More

Why Move to the Poconos?

Awaken to the sounds of softly rustling trees and tranquil... Read More

Maximizing Curb Appeal and First Impressions to Sell your Home

We all know that a home or property of any... Read More

Seller Financing - Six Safety Tips

Why offer seller financing when you sell? A higher price,... Read More

FSBO - Selling Your Home FSBO (for sale by owner) ? Is It Worth It?

FSBO, what is it? FSBO means For Sale by Owner,... Read More

Farm Expired Listings For Big Commissions

Many real estate agents begin and sometimes sadly end their... Read More

Avoid The Traps Of Finance

Most consumers are told where to get their mortgage because... Read More

Are You Profiting From O.P.P.?

Are you profiting from O.P.P.? If not, why not? We... Read More

You Dont Need Health Insurance!

Seems almost every situation in our lives is centered on... Read More

Fraud in Real Estate, Are You Being Victimized? - Part II

The phone range and Peter was on the other end... Read More

Should you Sell your Home yourself?

Should you sell your home yourself? Yes and no. Yes,... Read More

If You are Hiring a Neighborhood Specialist to Sell Your Home, there are Some Things You Absolutely

My husband and I were eating breakfast at the Good... Read More

FSBO: For Sale By Owners Chapter Two

Sheriff's Deputy Ted Rasmussen was thinking about Carrie-his pregnant waitress... Read More

How Do I Implement The Lease Purchase Plan?

Well, as we have discussed in previous newsletters first you... Read More

Property for Sale in Piemonte Italy is Attracting British Interest

The Region has four distinct seasons but in general possesses... Read More

How to Show & Sell Your California Home

Seller's Showing Instructions1. When the agent arrives with the potential... Read More

Dont Sell Your House--Ever!

Keeping your existing house when you buy a new one... Read More

Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit

One of the quickest ways to real estate profits is... Read More

Real Estate Investing Is A Better Gamble Than The Lottery

Real estate investing begins when you move to the starting... Read More

Selling Your Home ? What Can Go Wrong With Pricing and Loans

So, you're selling your home (house, townhouse, condo, apartment, land,... Read More

Hey Landlord! Is Your Lease Legal?

The longer you are a landlord the more you strive... Read More

Making Money In Real Estate - 10 Ways

Making money in real estate is an endless topic that... Read More

Home Owners: Disclose the Facts!

One of the most common causes for disputes occurring after... Read More

How To Get Started In Preconstruction Investing?

Through our website the most common question that we receive... Read More

Buying Beach Houses in New Zealand: Real Estate and Investment Opportunities

Buying a beach house in New Zealand offers many possibilities.New... Read More

Protective Covenants ? Buying A Home

In addition to zoning, some properties have covenants recorded at... Read More

How to Build A Rental Property Money Machine

If you are looking for a steady, income-producing investment that... Read More

Real Estate Investing By The Numbers

Just like most things real estate investing can be broken... Read More

Building Your Dream Home - Part 1

For most of my adult life I had thought about... Read More