If you are like most people you probably have no idea what TIC, or Tenancy in Common, is or what TICA is. TIC: Tenant in Common Association (TICA) is a trade association that serves common owners of property, or in more plain terms it is an association that protects the rights of multiple owners of real property. If one owner dies or wishes to sell their interest in the property, TIC: Tenant in Common Association (TICA) will help to protect those interests for the owner.
TIC: Tenant in Common Association (TICA) Functions and Duties
Firstly if you are a tenant in common you should apply for membership in TICA. It is a simple online process, and once you are a member you can take full advantage of all the services they provide. TIC: Tenant in Common Association (TICA) has representation in all fifty states in the United States with their main offices being in Indianapolis, Indiana.
Once you are a member in the TIC: Tenant in Common Association (TICA) you have access to four main benefits with other smaller benefits being associated with these. The first benefit is professional development. Membership allows you to interact with leading tenant in common professionals at annual conferences and symposiums as well as affording you the opportunity to speak with these professionals in times of need.
The second benefit is education. TIC: Tenant in Common Association (TICA) offers and extensive list of courses hosted at conferences and symposiums to help you understand your rights and responsibilities as a tenant in common.
The third benefit of membership is access to information from the association. TICA sends out quarterly newsletters with information on the latest news, alerts, and legislative rulings that are relative to tenant in common law.
The fourth, and probably the most important, benefit of membership is getting representation from members of TICA. TICA board members act as industry watchdogs and stay current with developments that affect you and your property. You can also call on these members to voice your opinions to local, state and in some extreme cases federal government to be sure that interests are protected.
There are plenty of other benefits from membership, but these four cover most of the problems that you may see as a tenant in common. TIC: Tenant in Common Association (TICA) is first and foremost there to protect you, but they can only do this if you become a member. If your property is important to you and you meet the criteria as a tenant in common, contact them to get started as a member and you will not regret it.
Mostly, people that make TIC (tenant in common) investments will have 1031 exchange in mind and even though TIC as an industry is just a small part of 1031 market, it is still increasing at a good rate and thus worthy of serious consideration. At present, TIC can be brokered either as a securities or real estate transaction and thus there is a grey zone that exists with regard to whether Tenant in Common is Securities or Real Estate.
Securities Or Real Estate Dealers/Brokers
There are a few organizations such as the National Association of Realtors (NAR) that are concerned about whether TIC that is in the form of a partnership or security, or both, will be disqualified under 1031, and furthermore such disqualification will in turn require using security dealers/brokers for security transactions and not real estate brokers because the transactions are not deemed as being real estate deals.
In fact, to be sure about whether Tenant in Common is Securities or Real Estate you need to understand what security is and what real estate means. Typically, securities involve investing money or other form of property, and investing in common enterprise based on a third person's expertise and the intention is to earn a profit. However, there is no real clarity when it concerns Tenant in Common: Securities or Real Estate though for any TIC transaction to be qualified as 1031 tax deferral, it requires that the National Association of Securities Dealers or NASD has to step in to evaluate the TIC industry and then shed further light on whether Tenant in Common are Securities or Real Estate.
What it thus boils down to is that, as far as Tenant in Common: Securities or Real Estate is concerned, if the TIC transaction is deemed to be one of security then the deal has to be brokered through securities dealer/broker and there is no place for a real estate broker in such instances. On the other hand, when Tenant in Common: Securities or Real Estate relates to a real estate TIC exchange, then the deal has to be brokered through real estate brokers/dealers and there is no place for the securities dealers/brokers.
As a matter of fact, when trying to decide whether Tenant in Common are Securities or Real Estate it is really quite difficult trying to figure out what is security and what is real estate, especially as the matter is further compounded because there is nothing clearly mentioned in the Revenue Ruling, or Revenue Procedure in this regard. Thus, depending on who is viewing the TIC, deciding on Tenant in Common: Securities or Real Estate depends on whether the NASD is handling the matter and if so, it will treat the TIC as securities while, if it were the NAR, then the TIC would definitely be considered as real estate.
Kathryn Landry has sinced written about articles on various topics from tax, Investments and Tax. Kathryn R. Landry is a business writer for . A company that can give you the most complete information on a 1031 exchange or TIC property ownership.. Kathryn Landry's top article generates over 8100 views. to your Favourites.