\nTenants in common agreement<\/td>\n | POA<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nWhat is a tenants in common agreement?<\/h3>\nA tenants in common (TIC<\/strong>) agreement outlines the terms and conditions relating to the ownership of real property that is owned as tenants in common. A TIC agreement can provide certainty in situations such as where one co-owner wants to sell at a price that the other co-owner does not agree to. The TIC agreement has a process to overcome deadlocks and disputes in arriving at fair market value.<\/p>\nOur TIC agreement package covers, amongst other things, death, disablement, compulsory and voluntary sales.<\/p>\n TIC Agreements and SMSFs<\/h3>\nIt is increasingly common for SMSF trustees to hold property with others to increase the funds available to invest and to minimise risk. An SMSF trustee will usually hold a part interest in real estate as tenants in common with the other co\u2011owners. However, it is important that each SMSF trustee is aware of the pros and cons of co-investment and the consequences that may arise when things don\u2019t go as planned or if a disposal or exit from a jointly held investment is needed. A TIC is recommended to place the relationship at arm\u2019s length and provide greater certainty to minimise the risk of costly and protracted disputes.<\/p>\n |