Tenancy in Common

Tenancy in Common

Tenancy in common (“TIC”) is when two or more parties each have an “undivided interest” in the property and all have an equal right to use the property, even if the percentage of ownership or shares differ in size. This form of ownership is common where the co-owners are not married or have contributed different amounts to the acquisition of the property. Also, unlike joint tenancy interest, which passes automatically to the survivor, upon the death of a tenant in common there must be a probate of the estate of the deceased in order to transfer ownership in the tenancy in common:

Benefits of a TIC

Tenancy in common is ideal for people who do not have sufficient funds to purchase 100% of a property. It has become a fast, easy and inexpensive way to diversify your portfolio and own real estate in your IRA, 401k or other qualified retirement account. Tenancy in common is also a great solution for people who want to leverage their current property ownership into a significantly larger or more valuable parcel.

Other benefits include:

  • You do not need to secure a mortgage no assume any debt to reap the long-term appreciation benefits of land banking.
  • You can enter and exit your investment at will as defined in the Co-Tenancy Agreement.
  • You can purchase any fractional amount of real estate as stated in that specific property offering.
  • Participation in a TIC allows you to purchase and own more property that you could afford to purchase on your own.
  • TIC offers you the opportunity to enjoy the benefits of real estate ownership with maximum flexibility.
  • If you purchase a TIC property in your Self-Directed IRA, there are NO loss of IRA tax benefits and NO tax penalties.

ACE Capital Group TIC

  • ACE Capital Group helps facilitate two, three, and four or in some cases ten person TICs as follows:
  • All Owners (Co-Tenants) have an undivided fractional interest in the property and not required to have equal shares or size.
  • Each Owner receives an individual grant deed and title insurance for his or her undivided percentage interest in the entire property.
  • A TIC is considered to its own entity and functions as one unit. All of the Co-Tenants participate in decisions regarding the disposition of the property.
  • A TIC ownership interest can be purchased, sold gifted, bequeathed by will, or inherited, and is subject to property taxes, gift tax, estate and inheritance taxes in the same manner as any property held in fee simple ownership.
  • Co-Tenants may sell their ownership to anyone in or out of the TIC as defined in the Co-Tenancy agreement.
  • All TIC participants maintain their autonomy in terms of deeds and taxes.
  • Any ACE property that can be bought individually can be bought as a TIC.
  • ACE requires NO EARNEST MONEY and NO CREDIT CHECK.
  • ACE finds the other qualified Owners of your TIC and you are given the contact information of the other Co-Tenants.

How to Participate in a TIC

  • Contact an ACE Representative
  • Determine the amount of funds you have available to participate in a TIC.
  • Identify the parcel of property you want to acquire either with cash or in your IRA.
  • Let ACE go to work and find you the other TIC participants
  • Review all the due diligence required for closing on your property. Closing is usually completed in just a few days.