What is tenancy in common in real estate?
Tenancy in common (TIC) is a type of ownership arrangement in which two or more people share ownership of a specific property or some part of the land. In this ownership, every individual owner may possess an equal or different amount of share of the entire property. The desired property may be either commercial or residential. If one of the tenants dies in any case, the property belonging to that person can be given to any person they choose as a beneficiary. We have so far established what is tenants in common meaning
Advantages of TIC:
1) The purchase of real estate becomes much easier with this process.
2) The levels of ownership can be varied as per convenience.
3) The percentage may vary in terms of property and it can be retained by co-tenants.
4) When the value of the property rises, it benefits all tenants.
Disadvantages of TIC:
1) When a co-tenant dies, their portion of the property can be passed on to chosen successors who may wish to use it for other purposes.
2) A physical partitioning of property can be requested by any owner of the desired property.
3) The other co-tenants are accountable if one of them fails to pay their share of the mortgage.
4) One owner can sell or transfer their stake without the approval of the other owners.
The following types of properties are commonly owned as tenants in common:
1) Property is being purchased by a group of investors.
2) The people who make various contributions to the purchase of a home.
3) The people who have adult children, who are getting married for the second time, are the best example of tenancy in common.
These excellent NoBroker legal services will help you with all your queries regarding house purchasing and other legal services. Read More: How to fill tenancy agreement form? What is tenancy act?
What is tenancy in common in real estate?
Nitin
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2021-12-14T19:04:35+00:00 2021-12-17T16:09:32+00:00Comment
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