Tenants in Common
Tenants in common co-own a property together, and are allocated a percentage of the property that makes up their individual unit.
What does that mean?
This means that you can buy a fraction of a property with others under a special TIC contract (we call this contract the ‘TIC Agreement’). This allows for you to sell or leave your portion of the property to someone else, without needing to involve the rest of the owners.
Why are TICs so hot right now?
TICs are rental communities converted to home-ownership communities. These new communities are offered at 15–20% below market rate, due to the limited financing options available today. These communities are developed with everyone in mind for a harmonious community lifestyle.
What is a TIC and why does L.A. have it?
TIC stands for Tenants in Common. If you have ever owned a home you may have heard of Joint Tenants and Sole Proprietorship. Sole Proprietorship is what it sounds like, one person owns the property completely and can leave the property to whoever is in their will if they pass away. If this person does not have a will or descendants, that the property will be subject to probate. Joint Tenants and Tenants in Common both have multiple persons owning a property together, but there are some major differences.
“Joint Tenants must obtain equal shares of the property with the same deed at the same time. The terms of either a joint tenancy or tenancy in common are spelled out in the deed, title, or other legally binding property ownership documents. The default ownership characterization for married couples is joint tenancy in California. A joint tenancy is broken if one of the tenants sells his or her interest to another person, thus changing the ownership arrangement to a tenancy in common for all parties. tenants in common may have different ownership interests.
Tenants in Common can create a contract between the tenants to own different fractions of the property and its…