Tenancy in Common Agreements (also known as a TIC Agreement) are agreements between co-owners of real property. Although co-owners always begin a purchase with the best of intentions, unfortunately disputes between co-owners occur. Without an agreement co-owners of real estate are forced to go through an action called a “Partition Action.” Partition Actions are a special kind of court proceeding specially designed to divide up real property as between co-owners.
While it is fortuitous that a special kind of action exists, like any court action, the process is long and arduous. Having a well worded agreement then is essential to avoid a lengthy court battle. Often an Tenancy in Common Agreement will attempt to not only preemptively determine the rights or parties, but, will also provide a procedure if an disagreement arises. Often this involves an agreement to mediate or arbitrate so that the parties are not stuck with the long wait times associated with court battles.
Generally these agreements should be negotiated and discussed before the purchase of a piece of Real Property. The idea being that if the parties cannot agree on the governing of piece of real property then it is advantageous for the parties to have an opportunity to cancel the purchase.
While a TIC Agreement requires an additional initial investment, often the amount of headache it can save down the road far, far outweighs the up front cost. The San Francisco based real estate attorneys can assist with preparing or reviewing a TIC Agreement to make sure your rights are protected.
