A TIC resale does not happen on the back of a dog or a cat. That would be a "tick resale". I don't know why the dogs or cats would want to swap ticks, but that's their business and God Bless America for free enterprise. Anyway, a TIC is short for "tenancy in common", also called 1029 investments. Instead of buying shares in a huge company, you buy a "share" of ownership of a large piece of real estate. A recent IRS law change made TIC investments a lot easier and so, more popular.
So, You Want To Sell, Do You?
Once you get into a TIC partnership, you don't have to be with them until you die. You can sell your share any time you want. This is a TIC resale. However, you just can't perform a TIC resale with the first person who gives you a box of chocolates. That would be like marrying the first person you date. Your TIC group usually wants to interview the potential buyer of your TIC resale in order to be sure this person isn't going to rip them off.
Differs From State To State
You have to be sure your TIC resale goes along with the rules of your state. And yes, these rules differ from state to state. For example, in California, you can do a TIC resale without drawing up a Public Report (and yes, it's capitalized) with the California Department of Real Estate. Sometimes, a Public Report is also called a "White Paper", no matter what color the paper actually is.
However, California has strict rules on what is a true TIC resale and what isn't. Some people have done fake TIC resales in order to look like they have less money than they do and thus pay fewer taxes. There are other reasons people can engage in fake TIC resale actions, but nearly all of them are illegal.
Who Gets The Property Tax?
Again, your TIC partnership needs to check with your broker to be sure you are following your state's property tax rules. Failing to pay them will get you in deep trouble very quickly. Usually, the bill for property tax goes to the TIC group and not each member in the TIC group. Then they figure out the percentage of taxes each partner must pay.
A TIC resale has been known to sometimes affect what everyone else in the partnership has to pay. A TIC resale, ideally, shouldn't be the immediate cause for the increase in property taxes to the remaining members. This should be true even if the property tax suddenly increases during the time of the sale.
Author Resource:-
Kathryn R. Landry is a business writer for TIC Advisors, Inc. A company that can give you the most complete information on a 1031 exchange or TIC property ownership.
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