With a tenancy in common group loan, how is each owner’s payment determined?
Each co-owner’s tenants in common group loan payment is determined by the amount of the group loan he/she is responsible to repay. When the TIC is first formed, each owner’s down payment is subtracted from his/her purchase price to determine how much of the group loan that owner is responsible to repay. The difference between a co-owner’s purchase price and down payment, often called the co-owner’s loan amount or loan share, is divided into the total amount of the group loan to determine the co-owners loan percentage. The co-owner’s loan percentage determines how much of the monthly payment on the group loan that co-owner must pay. For example, imagine that Jane and Bill are buying a two unit building together for $1,000,000. Jane, who will have the right to live in the better unit, is paying $600,000 for her share, and Bill is paying $400,000 for his share. The $600,000/400,000 split of the price is based upon the relative value of the two units in the building. Bill, who has more sav
