"TIC", or Tenancy in Common, is a way of owning real estate where multiple people take title to a property with a percentage undivided interst in the entire property without right of survivorship, meaning their interest passes to their heirs upon their death, not to the other owners. Each individual interest can be conveyed separately or simultaneously, depending on when the buyers are located and ready to close escrow.

TIC is an excellent way for commercial, industrial, and multi-family property owners to maximize the value of their property while reducing or eliminating thier management, maintenance, and tax burdens. It is also a viable and inexpensive way for investors, companies, individuals, families, or other entities to own real property and have control over their investment. It is also a popular property type for 1031 Exchanges since they can qualify as investment properties.

The end result of owning a TIC iunterest in a commercial or multi-family property is similar to a commercial suite or residential condominium in that the owner has the exclusive and uninterrupted right to occupy and enjoy a specific unit in a building, (as opposed to interval TIC ownership, common in fractional vacation homes) and pays a monthly assessment (similar to HOA dues) which covers property taxes, maintenance, group utilities, and reserves for repairs and upgrades. The major difference is that TIC owners do not have CC&R's (Covenants, Conditions, and Restrictions) regulating the use of the property. A private TIC agreement , drawn up by a qualified attorney, will set forth stipulations about how the owners make decisions regarding the use and management of the property, allowing the owners to agree on how they will handle their property.

TIC has become a major success in the San Francisco area and is rapidly spreading to other parts of the state. In the past, TIC interests were purchased by several owners under one loan, which proved to be challenging when one owner decided to sell or stop making payments on their portion of the loan. However, with recent growth in the industry, several lenders have introduced individualized financing for these types of properties. This development has facilitated the resalability of each owner's share, and protects the other owners from default or foreclosure from another co-owner.

For a more thorough explanation of TIC ownership, please refer to the following article, written by Andy Sirkin, real estate attorney and broker in San Francisco, CA: http://www.andysirkin.com/HTMLArticle.cfm?Article=1