If one of the investors in a Tenants-in-Common (TIC) arrangement wants to sell their share, they will need to find a buyer who is willing to purchase their portion. The sale of a TIC interest is typically done through a private sale, as TIC shares are not publicly traded.
The TIC agreement may outline specific procedures for how a TIC interest can be sold, including any restrictions or limitations on the sale. For example, the TIC agreement may require the selling investor to offer their interest to the other TIC investors before offering it to outsiders.
Once a buyer is found, the sale must be approved by the other TIC investors, as they will still be co-owners of the property with the new buyer. The TIC agreement may specify the process for obtaining approval from the other investors, such as a vote or consent from a certain percentage of the investors.
The proceeds from the sale will be divided among the TIC investors based on their ownership percentage. It’s important to note that the sale of a TIC interest can trigger tax consequences for the seller, and they should consult with a tax professional before proceeding with the sale.