Tenants-in-Common (TIC)
Direct fractional co-ownership of a property, where each owner holds a deeded percentage interest.
Definition
Tenancy-in-common is a form of co-ownership in which multiple investors each hold a separate, deeded fractional interest in the same property. A TIC interest in investment real estate can qualify as like-kind replacement property for a 1031. TICs were the main fractional vehicle before DSTs became dominant; each co-owner has direct title and a vote, which brings both control and coordination burden.
Why it matters
A TIC lets you deploy exchange proceeds into a larger, institutional-grade asset than you could buy alone. The trade-off versus a DST is more control but also more required cooperation among owners on decisions and financing.
Related terms
General education — not tax or legal advice. This explains how §1031 exchanges work in general terms and uses simplified assumptions. Rules and tax rates change and your situation is specific. Talk to a qualified CPA or tax attorney before you rely on any of it. See our full terms & legal notice.