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What are they?
Essentially,
a Tenant-In-Common is a structure in
which a property can be held in. The advantage of this structure is that
separate individuals or entities, who hold title as Tenant-In-Common Investors,
have a fractional ownership and can
control their portion of that ownership. For example: when a title is held as
Joint Tenancy, if one of the Joint Tenancy holders die then their portion of
the property would go to the other Joint Tenant(s).
If title is
held as Tenant-In-Common that may not necessarily be the case. The property
share would go to the deceased persons estate, or the person they have
designated it to, because they had a fractional interest that was separate from
the other owner or owners. This structure has evolved into an entire industry
of large prepackaged, professionally managed, properties and has been embraced
by 1031 Exchange investors.
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