| Tenancy In Common (TICs) With Exclusive Occupancy |
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Tenants in Common (TIC) ownership is often paired with a tenants in common agreement (TIC Agreement) under which each owner receives the exclusive right to occupy a particular space within the co-owned property. The assigned spaces may be apartments within an apartment complex or building, houses on a single lot, rooms within a single house, offices within an office suite or office building, storage areas within a warehouse, or any other part of a residential or commercial property. We have even created space-assignment tenancies in common for a horse stable, a marina, and a yurt commune. Assigning occupancy rights in a tenancy in common agreement allows a Realtor, seller, project sponsor, or co-owner group to create an arrangement that feels and acts like a subdivision even though actual legal subdivision is impossible, unaffordable, or too time-consuming. To learn more about TIC legal services offered by Sirkin & Associates, visit Our Services.
TICs with assigned occupancy rights should not be confused with TICs that do not involve occupancy rights (including TICs formed for 1031 tax deferred exchanges) because the important issues and questions are very different. For information on TICs without occupancy rights, visit our real estate investment page. The articles, links and resources on this page relate specifically to tenancy in common arrangements involving exclusive occupancy rights.
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TIC FAQs
More and more people share real property, either as homes or for investment. Here are answers to the most commonly asked questions about tenants in common ownership. |
The New Generation of TIC Agreements
While we are proud of the more than 5,000 co-ownership agreements we have written over the past 25 years, we constantly adapt and improve our documents based on the feedback of co-owners and other attorneys. This year, our tenant in common agreements have made a quantum leap forward in quality and clarity, as explained in this article. |
Financing and Refinancing TICs In Today's Difficult Market
Answers to the the most commonly asked questions about TIC lending in the current lending environment |
TIC Property Tax Allocation
Often, each parcel of real estate receives a single property tax bill, regardless of whether there is one owner or ten. This article explains how to divide property tax among tenants in common owners and efficiently collect each co-owner’s share. |
| TIC Financing Resources |
TICs In Today's Real Estate Market
How are tenant in common (TIC) arrangements performing in today's real estate market? Are tenancies in common appreciating in value? How does TIC appreciation compare to appreciation of condominiums, cooperatives and single family homes? |
Building Owners Selling One TIC At A Time
Selling TIC shares one at a time as tenants vacate; Protecting a seller from the financial risks of having TIC co-owners; Does selling TIC shares increase the seller's property taxes? Can TIC sale proceeds be used in a 1031 tax-deferred exchange? |
A Tenants In Common (TIC) Primer
An introduction to tenancy in common ownership |
Tenancy In Common Instructional Video
This lecture discusses all aspects of tenants in common formation and governmental approval. Part 1 of a video link. |
TIC Instructional Video
This lecture discusses all aspects of tenancy in common formation and governmental approval. Part 2 of a video link. |
New California TIC Regulations
The California Department of Real Estate (DRE) has recently adopted new regulations for formation and sales of tenants in common (TIC) arrangements involving assignment of exclusive occupancy rights. (54 KBytes, PDF) |
California Public Reports For Large Tenancy In Common (TIC) Projects
The need for California Department of Real Estate approval for sales of TIC interests in parcels containing five or more residential units, and the procedures and requirements for obtaining approval. |
DRE Regulation of Tenancy In Common Projects
Spring 2003 edition of DRE publication "Real Estate Bulletin" with article stating the California Department of Real Estate's current position regarding regulation of large TICs (257 KBytes, PDF) |
TIC Public Report Re-Sale Exemption
Described conditions under which the California Department of Real Estate does not require a Public Report for resale of a TIC share in a 5+ unit building (51 KBytes, PDF) |
Buying and Selling TICs in Larger Buildings
Are TICs formed for large buildings more risky? How are tenants in common arrangements structured? |
Rental Tenants Purchase Own Building As TIC
Case Study involving sale of an apartment building as a tenancy in common to a building’s existing renters. How can an apartment building be converted to a TIC? Is there a way to sell a building one unit at a time without converting to condominiums? |
New Case Limits Local Governmental Regulation of TICs
Daro v. Foy, just decided by a California appellate court, clarifes that TICs do not fall under the Subdivision Map Act and therefor are not subject to local subdivision or condominium conversion restrictions. See pages 10-14. (178 KBytes, PDF) |
Court Decision in McTIC Lawsuit
Court decision in "Tom v. San Francisco" striking down TIC regulation and arguably holding that local governments cannot prohibit TIC formation by homebuyers. This decision was later ordered published, making it official law. |
Individual TIC Financing
Is individual tenants in common financing possible, and how does it work? |
Individual TIC Financing Revisited; Seller/Developer Liability In TIC Sales
Availability of individual (fractional) TIC financing; kinds of fractional tenant in common loans currently available; Does selling TIC interests create unusual liability for an apartment building seller? |
California Property Tax Rassessment
A detailed explanation of how to avoid property tax increases triggered by changes in ownership or the manner of holding title, including spousal transfers, tenant in common interests, joint tenants, limited liability companies and gifts (10234 KBytes, PDF) |
TIC Purchase Contract Addendum/Disclosure (group loans)
An attachment for purchase contracts which provides the contract contingencies, terms, and disclosures which need to be added to standard form purchase contracts for individual TIC interests sold with group financing (112 KBytes, PDF) |
TIC Purchase Contract Addendum/Disclosure (individual loans)
Purchase contract addendum for sales of TIC interests with individual loans (90 KBytes, PDF) |
California Subdivided Lands Act
CALIFORNIA CODES BUSINESS AND PROFESSIONS CODE SECTION 11000-11023, the California consumer protection law that regulates the sale of subdivisions and undivided interests such as tenants in common (TICs) (474 KBytes, HTM) |
California Subdivision Map Act
CALIFORNIA GOVERNMENT CODE SECTION 66410-66499, the California law that specifies how cities and counties can restrict lot splits, condominium conversions and other subdivisions (1785 KBytes, HTM) |
Our Housing Crisis: A Developer's Perspective
A cogent argument that allowing more density is the only was to increase housing affordability (260 KBytes, PDF) |
Promoting Home Ownership Through Condominium Conversion
A complete and well-considered discussion of two competing proposals for liberalization of San Francisco's condominium conversion restrictions, released in 2004 (649 KBytes, PDF) |
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| Evictions and Related Landlord/Tenant Matters |
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| The articles, links and resources below are included as a public service because some of our tenancy in common clients are interested in these topics. Please note that our office does not advise or represent clients in evictions or other landlord tenant matters of any kind. Also note that most tenancy in common formations do not involve evictions. |
Owner Occupancy and Ellis Evictions
Rent control laws interfere with owner-occupancy in some communities. This pamphlet describes the requirements and procedures for Ellis Act and owner move-in evictions. |
| Text of The Ellis Act |
Small Property Owners Website
Includes a sample Rental Agreement |
| San Francisco Rent Control Law |
San Francisco Requires Higher Eviction Payments
In November 2006, San Francisco votes approved a new law that requires higher payments to tenants in connection with certain types of evictions. This article explains the new requirements |
Ellis Act Eviction Statistics
Recent eviction statistics and trends for San Francisco (350 KBytes, PDF) |
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