How Do You Buy A Tenancy-In-Common (TIC)?
A tenancy-in-common (TIC) is a legal scenario where several owners buy a building together which has not been divided into condos. This arrangement can be a confusing one for those new to the system, and even gives the old pros difficulty at times because of its complicated nature. Here are some tips on how to buy a tenancy-in-common. • The Pros. First, examine the pros that a TIC will bring you. In this arrangement, you, as an individual owner, have the right to sell your interest or part of the building if you’d like. Also, if the building produces income, one owner may complete a tax-deferred exchange into another “like-kind” income-producing property. This allows the owner to avoid capital gains on the first property. All in all, if you are outpriced in the market and cannot afford a property on your own, this is one of a few solutions. • The Cons. Examine the difficulties associated with the TIC agreement. Aside from the large amounts of paperwork, you must be willing to cooperate
