Key on a house shaped keychainTIC property is a tenancy in common. This means more than one person will own the property. Each one will have a share in the property. The size of the share will depend on how much money the co-owner will put in to buy the property. The size of the share will also affect how much each co-owner pays for taxes, and how much each one will receive in profits. It is not the same as joint tenancy.

In a TIC, when a co-owner dies, it does not go to the other owners in the TIC as would happen in a joint tenancy. Instead, it goes to the heirs of the co-owner. People that buy TIC property do so because of the benefits. However, there are also risks. Below are the pros and cons of TIC property.


The best thing about TIC is you spread the risks and management of investment property. You buy into a TIC with other people. You share the expenses for everything. This means you have greater borrowing power. You will be able to buy property that you may not be able to do otherwise. You might even be able to do a 1031 exchange for avoiding paying taxes when selling another investment property. You can also share your share of the property at any time.

If you buy TIC property and rent it to other people, you do not have to manage it yourself. You and your co-owners will designate that to a property manager. Finally, you can control who will get your share if you die. You can specify that in your will.


The worst thing about TIC is you have to decide everything as a group. You cannot claim any particular part of the property as your own. If you need a loan, all the co-owners have to agree and sign the mortgage agreement. If any of the co-owners do not pay their share of the mortgage payments, the rest will have to make up for it. If any of the co-owners dies without making a will, the TIC property will have to go through probate. The co-owners will then have to deal with a new co-owner. Finally, any co-owner can force other co-owners to sell the property by filing a partition action.

A TIC property is an excellent option to buy property you may not be able to afford on your own. However, it does have its drawbacks. Find out more about TIC and other types of property exchanges to make the right choice for you.

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