Buying Property as Tenants in Common is New Trend

More and more investment brokers are now advising groups of buyers to purchase property as tenants in common, bypassing traditional methods -- such as forming limited partnerships or corporations -- to hold title.

Liability issues aside, putting together a small group of investors to buy, say, a single family home spreads the financial risk among more people and requires a lower investment. In other words, in-lieu-of putting down 10% to 20% to a new mortgage, TIC buyers can put down less, jointly finance a new mortgage (or pay all cash) and hold an undivided interest in the property. It's a good way for many small investors to get into the game of owing real estate.

But it's also a viable method of owning real property among the growing numbers of single buyers who are coming together to buy a single family home, condo or duplex. Because holding title as tenants in common gives owners the right of equal possession and, in the event one of the owners dies, the interest held passes to the owner's heirs.

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