Generally it refers to arrangements under which two or more people co-own a parcel of real estate without a â€œright of survivorshipâ€.
This type of co-ownership allows each co-owner to choose who will inherit his/her ownership interest upon death.
Another funny from Mansur!!! I think you are absolutely being Jolly. It's good to smile again, now that I no longer see funnies from Jim or Patrick.
Actually, I sent Jim a LONG detailed email about my situation including my debt ratio, tax returns and more. With the changing financial market, I needed to know what creativity is still available. I also mentioned that my hubby's new job has him in Siberia to Madagascar.
Jim's advice was, "Make sure your passport is current." I thought he meant my situation was so dire that I needed to skip the country. He meant I had the opportunity to visit the world.
San Franciscans have taken up the practice of owning pieces of multifamily buildings (duplexes, triplexes, etc. ) as part owners of a whole building using the TIC concept.
In Sacramento, it is more common to find two family homes that were built to be or were later rezoned as "halfplexes" meaning each side coud be owned individually. So 90 miles to the east, in the same state, it is more common to own one side of a building in its entirety. There are certain design and construction issues that have to be in place for a building to be divided Solomon like. Each side gets its own tax record and billing, is insured separately, financed separately. deeded separately, and treated like a single family house (or a condo) with a common wall.
In SF the older two and three family flats. can't be treated so separately so they use the TIC concept more widely. Perhaps a San Francisco agent will give more detail.
Another use of the TIC concept is by investor syndicates of up to 35 owners of commercial buildings, held for income. These are very useful for investors wishing to use the 1031 tax postponement provisions of the IRC, to trade from single ownership small income properties to participation in larger income producing properties.