When a property is sold in a tenants in common (TIC) investment, the sale proceeds are typically distributed among the co-owners in proportion to their ownership interests in the property.
Each co-owners ownership interest in the property is typically spelled out in the TIC agreement that was signed at the time of purchase. This agreement should specify the percentage of the property that each co-owner owns, and this percentage will typically be used to determine how the sale proceeds are divided among the co-owners.
For example, if three co-owners own a property as tenants in common and their ownership interests are split evenly, with each co-owner owning 33.33% of the property, then the sale proceeds will be divided equally among them. However, if one co-owner owns 50% of the property and the other two co-owners each own 25%, then the co-owner with the 50% ownership interest will receive half of the sale proceeds, while the other two co-owners will each receive a quarter of the proceeds.
It’s important to note that the exact method of distributing sale proceeds may vary depending on the specific terms of the TIC agreement, so it’s important for co-owners to carefully review their agreement and seek legal advice if there are any questions or concerns.