Is my property a TIC or Join Tenancy?
I'm sure this is an easy question for someone that knows their stuff, but how do I know if I property I bought recently with a business partner is held with joint tenancy or a TIC? I'm trying to figure out if that is something recorded on the deed, or if it is arranged by a partnership agreement, etc. I probably should have figured this out before we closed on the property, but better late than never.
It's based on the deed. If you held as TIC it should say something like "Luke Haverkamp (50%) and XXX (50%) as Tenants in Common". The % is defining your TIC ownership % and can be whatever was agreed to.
@Matt Devincenzo Thanks!
I went and looked at the deed and we are joint tenants.
Would it be worth it for us to try and change to a TIC?
I guess that depends on why you're wanting a TIC specifically? It can be done with a simple deed transfer from Joint Tenants to TIC yourself if you just prepare and record the deed. It sounds like that may be a bit past your current understanding of the process so having someone else help is probably a good idea. If you're an attorney close State they can probably take care of it for a few hundred bucks, the Title Co. could do the same most likely.
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#1 1031 Exchanges Contributor
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@Luke Haverkamp, depends on what you're trying to do. Joint tenants generally means the split is 50-50. You can still sell and do what you want with your %. Sometimes there's a "rights of survivorship" issue with joint tenants you'll want to explore.
J/T is an odd choice for business partners. If it was my property I would look closely into how that happened… and then fix it ASAP. Stop breathing and the business partner owns 100%.
@Matt Devincenzo, @Dave Foster, @Tom Gimer
I appreciate the comments. The rights of survivorship is why I would want to switch to TIC. I will look into getting it changed.
I forget my tenancy types a bit, but does seem odd... Check your State's laws on Joint Tenancy. Some call it "Joint Tenancy" and some call it "Joint Tenancy with Rights of Survivorship." Usually its for married couples whereupon one spouse's death the decedent's interest automatically transfers to the living spouse. TIC usually has it where the decedent's interest (i.e. their ownership) is transferred according to their will/hereditary laws... Joint Tenancy I think has to be 50/50.