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Tenants in Common (TIC) Agreement

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Tenants in Common (TIC) Agreement Powered By Docstoc
					This template provides instructions and information about a tenancy in common (“TIC”).
A sample TIC agreement is also included in this template. TICs are the most common
form of concurrent estates whereby two or more parties own property. As opposed to
joint tenancies, TIC’s do not have a right of survivorship and if a tenant dies, their
interest in the property will pass to their heirs. This template is useful for individuals or
entities that want to learn more about TICs.
Table of Contents



I. General Information .......................................................................... 3

II. Checklist ............................................................................................ 4

III.    Step-by-Step Instructions................................................................ 5

IV. TENANCY IN COMMON (TIC) AGREEMENT ..................................... 6




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I.       GENERAL INFORMATION



         People investing in property will be required to decide how to best take ownership
of their property. This form is for individuals who have opted to take ownership of
property as tenants in common.

         A Tenancy in Common Agreement (TIC) is used to establish ownership rights of
parties (unmarried) who own property together.                      Unmarried people who purchase
property together are considered tenants in common. This agreement serves to confirm
this type of ownership and define the rights of the parties. It is also particularly useful as
it will set forth the percentage of ownership that each party has.

                  In a tenancy in common, each person can own the property in unequal
shares, each has an undivided interest, and the right to leave their share of property to
someone else upon their death. This type of ownership can be distinguished from a joint
tenancy form of ownership. In joint tenancy, you and a co-owner together own the entire
property.

         In a joint tenancy if one of the owners dies, the ownership passes to the other joint
tenancy. In a tenancy in common, the share of the deceased owner can be passed, or left
to someone else via a will or trust.

Advantages of Tenancy in Common Ownership

        A tenancy in common ownership can allow people to own a fractional interest in a
         property that they could not afford otherwise. It is often used for investment
         properties.
        This type of ownership allows for the potential of a tax free exchange transaction.
        You can re-sell your interest.




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II.       CHECKLIST



         Tenants in common ownership allows parties to own the property in unequal
          shares;
         Consideration is required for this transaction to be valid. Consideration is the
          exchange of something of value between the parties.
         An Exhibit A must be attached to this agreement describing the property.
         All parties must sign the document and should retain a copy for their files.
         Should the parties have any questions or concerns, they should consult with a
          lawyer.




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III.     STEP-BY-STEP INSTRUCTIONS



These instructions highlight where the user needs to fill in information, as well as point
out any areas that should be paid close attention to. If the parties have any questions or
concerns they should contact their lawy
				
DOCUMENT INFO
Description: This template provides instructions and information about a tenancy in common (“TIC”). A sample TIC agreement is also included in this template. TICs are the most common form of concurrent estates whereby two or more parties own property. As opposed to joint tenancies, TIC’s do not have a right of survivorship and if a tenant dies, their interest in the property will pass to their heirs. This template is useful for individuals or entities that want to learn more about TICs.
This document is also part of a package Home and Apartment Owners Bundle 13 Documents Included