Tenancy-in-Common Buffalo NY

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A tenancy-in-common (TIC) is a legal scenario where several owners buy a building together which has not been divided into condos. This arrangement can be a confusing one for those new to the system, and even gives the old pros difficulty at times because of its complicated nature. Here are some tips on how to buy a tenancy-in-common.

1. The Pros. First, examine the pros that a TIC will bring you. In this arrangement, you, as an individual owner, have the right to sell your interest or part of the building if you'd like. Also, if the building produces income, one owner may complete a tax-deferred exchange into another "like-kind" income-producing property. This allows the owner to avoid capital gains on the first property. All in all, if you are outpriced in the market and cannot afford a property on your own, this is one of a few solutions.
   
   
2. The Cons. Examine the difficulties associated with the TIC agreement. Aside from the large amounts of paperwork, you must be willing to cooperate with several other owners. This may seem easy at the onset, but as decisions are needed further down the line, it could get ugly. Do not underestimate the stress involved with co-owning. Remember too, that a partner, upon his or her death can transfer ownership to anyone. The other partners do not have a say in the choice. This is something to consider as well.
   
   
3. Ways to Buy: Enter an Existing Partnership. You may find a property that is of interest to you and find that the owners are willing to "let you in." They will formulate the cost for you to enter into partnership with them. In this model, you have the luxury of scrutinizing the books, any inspection write-ups, and usually you have some time to do some background checking on your own.
   
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Author: Grace Bloodwell

Brian Heine Licensed Real Estate Broker

(716) 884-4437
390 Linwood Ave., Ste. 3
Buffalo, NY