Buyers for part of a tenancy-in-common?

[pdxgal]

A couple of recent threads re: wills and estate planning got me wondering something.

A friend plans to leave his 1/3 share of a vacation home to his alma mater. The home is held as a tenancy-in-common with his sister and BIL. I imagine that on inheriting the alma mater would want to liquidate it, rather than have the administrative hassle of partially owning a property. But who would they sell it to?

Is there are market for 'shares' in TICs?

 

[Vacation4us]

My question would be does he dislike his sister and BIL? Sounds like a hot mess that is completely unnecessary to me. I would imagine alma mater would want to force a sale either to sister or a third party. Either way what an unpleasant “ gift” to sister and BIL.

 

[Walt34]

My question would be does he dislike his sister and BIL?

"If you hate someone, leave them real estate."

This is even worse. How creative!

 

[FIREchief]

Let me guess. The "friend" never uses the vacation home and has heard "no" when asking the other owners if they would like to buy him out?

 

[cathy63]

Hopefully he is leaving the sister and BIL a life estate with the alma mater to receive his share after they die.

 

[pdxgal]

You're all spot on He is currently on the outs with sister and BIL, and asked them to buy him out and they said no (at least not at the price he wanted, based on several realtor valuations). Although I think his wanting to leave his share to the alma mater is unrelated.... he just really does want to leave the school something. He has no heirs. I just wonder if the school would even want it, or how it would be handled. I know there's a market for buying tax liens at auction, thought perhaps there's something similar for TIC shares. It does sound like a real albatross of a legacy to leave.

 

[phil1ben]

There can be a market for TICs. They are occassionally used in a commercial setting with multiple investors. For example, a group wants to buy a drug store and lease it out to a drug chain such as Walgreens. Some banks will finance TICs, but many shy away especially for a vacation home. The rights of the parties are almost always delineated in a Tenant in Common Agreement where the parties, among other things, waive their right to partition their interests. This agreement spells out in detail the rights of each TIC including any rights of transfer. However, if he is leaving the property to siblings and an unrelated college to "work it out" then that is a recipe for litigation.

 

[Music Lover]

Why do people with vacation properties think that people who don't have a vacation property not only want one but they want one with the hassle of shared ownership?

 

[pdxgal]

I told him it didn't seem like a good idea but he's unfazed. Says he'll be dead, so won't have to deal with it or care. Oh well.

 

[OldShooter]

... asked them to buy him out and they said no ...

He should talk to a lawyer in the state where the property is located. He may be able to force a sale if they will not buy him out.

At one point we were in a property owned by too many descendants of owners and one of the descendants had a state child support lien against the property. We were worried abut a forced sale, but in the end apparently the state decided it wasn't worth the hassle for them. So they just sit by the exit door waiting to bite if/when a sale occurs.