Minimizing Tenant-in-Common Risks
As published in Portland Business Journal
In the real estate boom years that ended in 2008, a cottage industry was born to sell tenant-in-common interests to real estate investors. However, with the collapse of the real estate markets, investors in TIC interests were exposed to certain risks previously ignored by such investors and their advisers.
Historically, the typical TIC project was owned by relatively few individuals, usually known to one another. Tax and equity-preservation considerations were normally behind investing in this structure as opposed to creating a partnership or limited liability company to own the property.
In the late 1990s, with the abundance of money generated...
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