The Biggest Problem With Tenants In Common Agreement, And How You Can Fix It

The Biggest Problem With Tenants In Common Agreement, And How You Can Fix It

Buying land or real estate nowadays is a big problem for many people. Land prices increase every year, so many people often cannot afford to buy an entire property. In such cases, people come to tenancy in common.

For example, you may want to buy a commercial building or a house in an expensive area of the city. However, you may not have enough money to fully own real property. In such cases, you may wish to purchase a property with another or several tenants in common. This solution is the most cost-effective to date.

It doesn’t matter who you want to buy property or land with. This could be your business partner, relative, or stranger. While such a solution is beneficial, there are some pitfalls of tenants in common.

We will talk about what tenants in common disadvantages are, as well as how you can resolve conflicts if they appear.

What should you know about TIC?

The first thing to note is that this form of ownership is different from common ownership. If you are a co-owner, then your share is 50%. Usually, this form of ownership is held by married couples. In the case of TIC, we are talking about the fact that ownership shares can be unequal. For example, one person will own 70% while two other people will own 15% each.

In general, a lot depends on which state you are going to buy land or property in. Before deciding on this, you should consult with a lawyer so that you understand what is the best option for you.

Regardless of who you share the property with, you may see some tenants with common problems. In such cases, the best solution is to enter a tenancy in common agreement, according to which you can share the responsibility for taxes, credit fees, and various other expenses.


The most obvious advantage is that you can think about buying any property or land you like without any limitations. You might even consider buying a house in one of the most prestigious areas in your city.

In addition, it is worth considering the fact that you can use all the property. Whether your share of the property is 50% or 15%, you have the right to the entire property. If you are planning to buy property or land as an investor, then this also gives you some advantages. You can easily find new investors and sell your share.

However, if you are planning to live on or work on the property, there are some tenancy in common disadvantages that you should be aware of.


What are the disadvantages of tenants in common? When it comes to land or property, there is too much risk of various conflicts. 

One of the biggest disadvantages of tenants in common is that tenants can sell their shares to anyone. If you don’t have an agreement, then there’s no way you can fight it. That is why the conclusion of an agreement is a reasonable decision. You can talk about how and to whom you can sell a share, who will receive ownership in the case of a deceased tenant, and also agree that your other partners can choose a person who wants to buy a share.

Conflicts can also arise regarding non-payment of taxes or a loan. If each of the tenants is a decent person who makes payments on time, then you have nothing to worry about. However, there are cases when one of the tenants or several may not comply with these conditions.

In such cases, other tenants will have to pay. It does not matter at all what share of the property you own. Even if you own 15%, you still have to pay the loan, which can lead to significant losses or even bankruptcy. If you cannot repay the loan, then this case may go to court.

How to avoid conflicts?

For some people, tenancy in common disadvantages can be critical. Often conflicts can arise between tenants who are strangers to each other. However, conflicts can arise even between relatives.

The TIC agreement is a reliable protection. This is your guarantee in case something goes wrong. Before taking possession of the property, you should agree with other tenants on the following important points:

  • Finance: You should agree on your monthly budget as well as how the various payments will be paid. In this matter, it is important to understand that your budget is enough to cover all payments. Discuss any other financial matters as well, such as repairs or maintenance;
  • Management: You need to make a decision about who will be the manager. The manager will control all payments, maintenance of the property, as well as other issues;
  • Silence breaking: If you have to live in the same building with other people or work with them, then you need to agree on the non-violation of silence. You must discuss the points that can cause noise. In such cases, you can install a noise reduction system to make everyone comfortable;
  • Presence of pets: Everyone is different, so your attitude toward pets may differ. You should discuss whether it is acceptable to have pets, which pets are acceptable and which are not;
  • Parking places: It is best to agree on the distribution of parking spaces so that there are no domestic conflicts. It is also worth discussing what sanctions you can apply in case of violation;
  • Storage space: If you own a commercial building, then you should agree on the allocation of space for storage space. If you own a house, then talk about whether it is possible to store things outside the apartment or room.


TIC offers people the opportunity to acquire and own any kind of property. For many, this option is the most profitable, as well as promising. Property can be bought both for personal use, commercial use, and investment. However, there are some issues that may be critical. The best solution would be to conclude a TIC agreement. To begin with, you need to discuss all the important points with other tenants and come to an agreement, as well as discuss fines.


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