Tenant-In-Common
Tenant-in-Common (TIC) is an umbrella ownership structure under which multiple individuals or entities come together to own an undivided fractional interest in real estate. Unlike a partnership or LLC, Tenant-in-Common ownership may offer added flexibility to investors upon disposition. TIC investors are not forced to remain with other co-owners after disposition and can decide individually whether to "cash out" or exchange into like-kind real estate. Conversely, investors under partnership ownership are required as an entity to either participate in an exchange together or liquidate and pay their tax liability. For this reason, TIC ownership has become an increasingly popular vehicle for acquiring commercial real estate among investors participating in 1031 like-kind exchanges.