Tenants in Common
Author: Diana Heeb Bivona they allow investors the ability to purchase an interest in a significant real estate asset, perhaps larger than they could obtain individually.
The investors own and control the properties, not a third party.
No individual owner (or group of owners) is in direct control of the property over any other investor(s).
Fractional ownership provides investors with the ability to diversify their 1031 Exchange into more than one property and to participate in potentially larger, institutional quality properties.
In recent years, many real estate investors have turned to a new form of ownership when purchasing commercial property. An alternative to sole ownership of real estate is an investment in a single commercial property by multiple owners, not as limited partners or as an entity, but as individual owners. It called co-tenancy or tenants in common (TIC)
Under a TIC, you own an undivided fractional interest in an entire property and share in your portion of the net income, tax shelters, and growth. Additionally, you will receive a separate deed and title insurance for your percentage interest in the property and have the same rights as a single owner.
TICs are popular because: