Interested in purchasing a place with 2 others, 3 friends total. Would love to hear examples of situations where TIC worked well! Or any advice on TIC or other shared ownership options.
Bought a duplex with my college buddy a few years back as TIC and it’s been pretty smooth. Main thing is to get everything in writing upfront – who pays what, what happens if someone wants out, maintenance responsibilities, all that boring stuff. We also set up a separate account just for house expenses which has saved us from awkward Venmo requests lol
InterestedParty5280 on
You have to go tenants in common. Otherwise, if one dies, the others get the property and the heirs get nothing. Joint tenants works well for married people. Nevertheless, I hope you get examples.
Individual-Fail4709 on
This is generally a bad idea. You need an attorney to develop a written contract.
Tall_poppee on
Definitely get advice from an attorney.
Co-owning with people you are not married to, is risky. You will almost never agree on who pays for what repairs or replacement stuff, if something breaks or just wears out. If one of your co-owners has financial problems, you either have to pay their share of the mortgage, or you risk foreclosure. If someone wants out, they cannot sell for 1/3 market value, no stranger is going to invest with you. The other owners need to be prepared to buy this person out, or risk a partition sale. Any of you can ask a court to order the property sold, and they always will do that, a court will never deny a partition sale request.
Can’t give you any examples where it has worked well, because I’ve never seen that. I don’t think it’s very common to begin with.
4 Comments
Bought a duplex with my college buddy a few years back as TIC and it’s been pretty smooth. Main thing is to get everything in writing upfront – who pays what, what happens if someone wants out, maintenance responsibilities, all that boring stuff. We also set up a separate account just for house expenses which has saved us from awkward Venmo requests lol
You have to go tenants in common. Otherwise, if one dies, the others get the property and the heirs get nothing. Joint tenants works well for married people. Nevertheless, I hope you get examples.
This is generally a bad idea. You need an attorney to develop a written contract.
Definitely get advice from an attorney.
Co-owning with people you are not married to, is risky. You will almost never agree on who pays for what repairs or replacement stuff, if something breaks or just wears out. If one of your co-owners has financial problems, you either have to pay their share of the mortgage, or you risk foreclosure. If someone wants out, they cannot sell for 1/3 market value, no stranger is going to invest with you. The other owners need to be prepared to buy this person out, or risk a partition sale. Any of you can ask a court to order the property sold, and they always will do that, a court will never deny a partition sale request.
Can’t give you any examples where it has worked well, because I’ve never seen that. I don’t think it’s very common to begin with.