Montana, Oregon Consider TIC Bills

Michelle Napoli is editor of TIC Monthly, from which this article is excerpted.

Helena, MT—Bills with implications for the tenant-in-common industry have been proposed in Montana and Oregon, and those familiar with the proposals say an effort is underway to introduce similar legislation in Idaho.

In Montana, Rep. Bob Lake sponsored a bill that was introduced to the House of Representatives on Jan. 9 that would revise the state’s real estate laws regarding tenancies-in-common. As proposed, HB256 would add to the state’s definition of real estate “an interest in an undivided fractionalized long-term estate in real property” and would add the following: “Undivided fractionalized long-term estate in real property means an ownership interest in real property that: (a) is a tenancy in common or any other undivided estate, including but not limited to a fee or life estate; (b) consists of two to 35 owners; and (c) if the real property is subject to a management agreement, the management agreement permits a majority of the owners to not renew or to terminate the agreement at the earlier of the end of the term of the agreement or 180 days after the date on which the majority of the owners give notice of termination.” The bill would also exclude real estate from its definition of a security.