What Happens If The TIC Property Requires Major Repairs Or Renovations?
If a property with a Tenant-in-Common (TIC) ownership structure requires major repairs or renovations, the responsibility for these expenses will depend on the specific TIC agreement that was established when the property was purchased.
In most cases, the TIC agreement will outline the responsibilities of each owner regarding repairs and renovations, and it will also specify the process for making decisions about these expenses.
Typically, TIC agreements will require that all owners contribute to the cost of repairs or renovations based on their percentage of ownership of the property. However, some agreements may require that all owners agree to major expenses before they are undertaken, while others may give decision-making power to a designated owner or a majority vote of the owners.
If there is disagreement among the TIC owners regarding repairs or renovations, it may be necessary to seek legal counsel to resolve the matter. In some cases, it may be necessary to sell the property in order to distribute the proceeds among the owners.
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