Tenant-in-Common (TIC)
A tenant-in-common structure is a form of fractional real estate ownership in which each owner holds an undivided percentage interest in the entire property, with rights to sell, finance, or 1031 their share independently.
What it means
TIC ownership allows multiple investors to co-own real estate without a partnership or LLC wrapper, so each owner retains direct real property status — critical for 1031 eligibility of their share. In a TIC, each owner's share can be sold, exchanged, or financed separately; decisions typically require unanimous consent, which is why TICs are generally structured with fewer (often 2–5) sophisticated parties.
TIC structures show up in drop-and-swap exchanges, small-group co-investments, and as the underlying legal form of some 1031 replacement offerings (distinct from DSTs, which trade beneficial interests in a trust).
Related terms