How Do You Buy A Tenancy-In-Common Unit?
This old English common law arrangement applied to a group of non-spouses who owned and used the same property. These days, tenancy-in-common (TIC) is a complex legal arrangement where multiple owners buy a building together which has not been split into condos. If you think that means a special set of considerations, you couldn’t be more right. Explore the benefits of this unique arrangement. Individual owners have the ability to sell. Also, if the TIC is an income-producing property, an individual owner can do a tax-deferred exchange into another “like-kind” income-producing property and avoid paying capital gains. Take a hard look what’s involved. You have to identify a suitable property, find a group of people you get along with well enough to be successful co-owners, and deal with a lot of paperwork. Understand the three methods of getting into a TIC. *Buy into an existing partnership. *Form a TIC from the outset. *Convert a partnership or limited liability corporation (LLC) into
