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      TIC Agreement

      Tenancy in Common Agreement

      1. TIC Agreement – If the borrower already has a TIC Agreement prepared by their attorney, would we then just use Legal Net to have it reviewed to ensure we are protected?   
        1. When multiple parties hold, or will hold, title to the property as tenants in common (tenancy in common) a Tenants in Common Agreement could be appropriate. The co-owners may have such an agreement among themselves, and the Lender’s review may be an appropriate underwriting understanding. GoDocs LegalNet can offer such review services for the lender if the lender does not have the capabilities to do so in-house. 
        2. GoDocs offers the option to include a Tenancy in Common (“TIC”) agreement with the loan documents package the is between the owners and the lender. The GoDocs TIC agreement outlines how the owners of the property will interact with the lender in terms of handling the property during the loan. While this is an optional item, it is generally recommended as it will included provisions specific to having a loan on the property where the lender has an interest in how the property is handled. When ordered, the TIC agreement will outline the ownership relationship in the loan agreement and provide a document called the Tenancy In Common Agreement along with a recordable Memorandum of Tenancy in Common Agreement. The loan TIC agreement is separate and not meant to replace any agreement the owners have amongst themselves. 
        3. Do note that TIC agreement is only designed for when the owners of the property hold title as tenancy in common, or something similar like tenants in common. Many married couples do not hold tile as such and the GoDocs TIC agreement would not be appropriate for those situations. The grant deed or title report should give an indication of how the owner(s) hold title. 
      2. Who to pick as Managing Co-Owner? The main contact (might not be the highest percentage owner) or the highest percentage owner?

      a. The Managing Co-Owner of a GoDocs TIC agreement is one of the property owners. The party that is identified as such is at Lender’s discretion. Within the TIC agreement, the Managing Co-Owner is the owner the lender will communicate with directly about the encumbered property.