In a tenancy in common (TIC) investment, each owner has a separate and distinct share of the property. This means that each owner has the right to sell, mortgage, or transfer their ownership interest in the property. However, unlike joint tenancy with right of survivorship (JTWROS), TIC owners do not have the right of survivorship.
This means that if one owner of a TIC investment dies, their ownership interest will not automatically transfer to the surviving owners. Instead, it will be transferred according to the deceased owner’s will, or if they die without a will, according to the laws of intestacy in the state where the property is located.
For example, if three people own a property as TIC and one of them dies, their ownership interest will pass to their heirs or beneficiaries, as determined by their will or the laws of intestacy, and not to the surviving TIC owners.
It is important to note that some TIC agreements may include provisions that allow the surviving TIC owners to purchase the deceased owner’s share or require that the ownership interest be sold to a third party. These provisions must be explicitly stated in the TIC agreement to be enforceable.