Growing up in the midwest, a tick was something your mom would check your head for after you were done playing outside.
Here in the California real estate market, though, **“TIC” is an acronym that stands for “tenants in common.” **
The phrase “tenants in common” refers to simultaneous ownership of a property without either party retaining the right of survivorship. In its simplest form, a TIC arrangement is one in which two or more individuals own a percentage of the property.
I actually worked with a client recently who was interested in buying a TIC listing. This client, named Lauren, found this property online, and when we went out to visit it, she fell in love. The property was actually one of six individual bungalows all on a single lot, making it a somewhat unconventional listing.
With this story in mind, you may be wondering what the difference between a TIC and a condo is. When you purchase a condo, the deed will specify which portion of the property you own. When you purchase a TIC property, however, this is not the case. Instead, your ownership is percentage-based.
When you buy a TIC, you’re investing your money with other people. As such, you must read through the contract very carefully before making the decision to purchase. This contract will define what happens if one of the tenants dies, what happens if one person stops paying their mortgage, and many other similar scenarios.
The biggest draw of TIC properties is that they tend to be much more affordable than other kinds of listings, but it’s important not to let this benefit cloud your judgment. TIC properties can be a great investment, but like any investment, it’s important to think carefully about your decision before you sign the contract.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.