If real estate is held as teanant in common who pays the real estate tax?

Answer 1

Tenant-in-Common Agreement

TIC structured offerings are formed with an in-place TIC Agreement. This agreement describes the relationship between the investor and all of the other TIC owners. The rights and obligations of the Tenants-in-Common are governed by this agreement.

In addition to the TIC Agreement, offerings are structured with an additional document signed by each TIC owner providing the sponsor with the ability to handle the day-to-day activities of the property. Thus the TICs have little required of them in the way of management. This ability is conferred in two ways: * Master Lease-a variety of Tenant-in-Common where the TICs act as the landlord, or Master Lessor, of the property, collecting rent from the tenant, or Master Lessee, who then subleases the individual suites to the tenants in the master lease. The sponsor typically oversees the management of the property (leasing, collecting rents, upkeep, etc.) TICs are paid a fixed rent according to the master lease, typically with possible annual increases. The Master Lessee typically keeps any property net income over the master lease rent amount.

If there is no written agreement to the contrary, then one tenant in common may pay the taxes (and collect the rents) and seek compensation from the other tenants in common for any deficiency.