Tenants in Common (TIC)
Tenancy in common is a co-ownership structure where multiple investors hold direct deeded shares of a property, each able to use their share in a 1031 exchange.
Definition
Tenancy in common (TIC) is a form of co-ownership in which two or more investors each hold a direct, deeded, undivided fractional interest in the same property. Under IRS Revenue Procedure 2002-22, a properly structured TIC interest qualifies as like-kind property, so investors can use it in a 1031 exchange.
TICs differ from DSTs in important ways. A TIC is limited to 35 co-owners, each holds actual title and typically has voting rights on major decisions (often requiring unanimity), and each usually must qualify for and sign the mortgage. This gives investors more control but also more responsibility and potential for gridlock.
Before DSTs became dominant, TICs were the primary way for smaller investors to co-own institutional real estate in a 1031 exchange. They remain in use where investors want a direct ownership interest and a voice in decisions, but the higher minimums, lender sign-off, and consensus requirements make them less common today.
Key points
- Direct, deeded fractional co-ownership of a property
- Limited to 35 co-owners under Rev. Proc. 2002-22
- Owners hold title and usually vote on major decisions
- Qualifies as 1031 like-kind replacement property
Related terms
Jerry Baker founded Baker 1031 Investments to help exchange investors move from active property ownership into passive, institutional-quality real estate through DST, 721 exchange, mineral royalty, and Opportunity Zone strategies. He holds the FINRA Series 22 and Series 63 registrations and the Securities Industry Essentials (SIE) qualification. Read full bio →
Reviewed by the Aurora Securities, Inc. compliance team — Aurora Securities, Inc., member FINRA/SIPC. Last reviewed July 2026. Securities are offered through Aurora Securities, Inc.; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc.
This glossary entry is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. Definitions are general and may not reflect your specific circumstances — consult your own CPA and attorney. Past performance does not guarantee future results.