--- title: What is the Difference Between TIC and DST? - Chicagoland 1031 Exchange description: So, what is the difference between TIC and DST when completing a 1031 exchange? Learn the characteristics of Delaware Statutory Trust and Teants in Common. image: https://blog.chicagoland1031exchange.com/hubfs/What%20is%20the%20difference%20between%20a%20TIC%20and%201031.jpg --- [![logo-black-mobile](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/logo-black-mobile.png?width=261&height=90&name=logo-black-mobile.png "logo-black-mobile")](https://chicagoland1031exchange.com/) [![logo-black](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/logo-black.png?width=261&height=90&name=logo-black.png "logo-black")](https://chicagoland1031exchange.com/) [![brokercheck-white](https://chicagoland1031exchange.com/wp-content/uploads/2019/07/iconfinder_phone-call_2561306.png)(224) 245-5281](tel:224-245-5281) - [Default HubSpot Blog](https://blog.chicagoland1031exchange.com/insights-events) - [Section 1031 Exchange](https://chicagoland1031exchange.com/1031-exchange-program/) - [1031 Exchange](https://chicagoland1031exchange.com/1031-exchange-program/1031-exchange/) - [DST 1031 Exchange](https://chicagoland1031exchange.com/1031-exchange-program/dst-1031-exchange/) - [Available 1031 Properties](https://invest.chicagoland1031exchange.com/1031-exchange-properties) - [Resources](https://chicagoland1031exchange.com/1031-exchange-information/) - [What is a 1031 Exchange?](https://chicagoland1031exchange.com/1031-exchange-information/what-is-1031-exchange/) - [Delaware Statutory Trust 1031](https://chicagoland1031exchange.com/1031-exchange-information/delaware-statutory-trust-1031/) - [1031 Exchange Process](https://chicagoland1031exchange.com/1031-exchange-information/1031-exchange-process/) - [1031 Exchange Timeline](https://chicagoland1031exchange.com/1031-exchange-information/1031-exchange-timeline/) - [1031 Exchange Rules](https://chicagoland1031exchange.com/1031-exchange-information/1031-exchange-rules/) - [1031 Exchange FAQs](https://chicagoland1031exchange.com/1031-exchange-information/1031-exchange-faq/) - [1031 Real Estate](https://chicagoland1031exchange.com/1031-exchange-information/1031-real-estate/) - [Partnering with a 1031 Advisor](https://chicagoland1031exchange.com/1031-exchange-information/1031-advisors/) - [About Us](https://chicagoland1031exchange.com/1031-exchange-professionals/) - [1031 Professional](https://chicagoland1031exchange.com/1031-exchange-professionals/1031-professional/) - [A National Presence](https://chicagoland1031exchange.com/1031-exchange-professionals/a-national-presence/) - [Property Due Diligence](https://chicagoland1031exchange.com/1031-exchange-professionals/property-due-diligence/) - [Sample Exchanges](https://chicagoland1031exchange.com/1031-exchange-professionals/sample-exchanges/) - [Insights](https://blog.chicagoland1031exchange.com/insights-events) - [![brokercheck-white](https://chicagoland1031exchange.com/wp-content/uploads/2019/07/iconfinder_phone-call_2561306.png)(224) 245-5281](tel:224-245-5281) # Insights ![Blog Banner Image](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/ch-website-images-header-homepage-option-03.jpg?width=1900&name=ch-website-images-header-homepage-option-03.jpg "Blog Banner Image") # Insights ### Subscribe to Our Blog - [1031 Exchange (17)](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) - [DST 1031 Exchange (16)](https://blog.chicagoland1031exchange.com/insights-events/tag/dst-1031-exchange) - [COVID-19 (9)](https://blog.chicagoland1031exchange.com/insights-events/tag/covid-19) - [Insights (9)](https://blog.chicagoland1031exchange.com/insights-events/tag/insights) - [Coronavirus (7)](https://blog.chicagoland1031exchange.com/insights-events/tag/coronavirus) - [Delaware Statutory Trust (6)](https://blog.chicagoland1031exchange.com/insights-events/tag/delaware-statutory-trust) - [News (6)](https://blog.chicagoland1031exchange.com/insights-events/tag/news) - [Opportunity Zones (6)](https://blog.chicagoland1031exchange.com/insights-events/tag/opportunity-zones) - [Alternative Investments (5)](https://blog.chicagoland1031exchange.com/insights-events/tag/alternative-investments) - [Due Diligence (4)](https://blog.chicagoland1031exchange.com/insights-events/tag/due-diligence) - [NNN Lease (1)](https://blog.chicagoland1031exchange.com/insights-events/tag/nnn-lease) More Tags # What is the Difference Between TIC and DST? ##### Written by [Nathan Kuhn](https://blog.chicagoland1031exchange.com/insights-events/author/nathan-kuhn) on September 10, 2018 - [Tweet](https://twitter.com/share) --- Tenants in Common (TIC) and Delaware Statutory Trusts (DSTs) are both viable structures to implement multi-owner real estate offerings when completing a 1031 exchange. However, there are several key distinguishing characteristics. **Decision-Making** In the TIC structure, there are IRS requirements that require numerous key decisions from the owner(s), such as: - Sale of the property - Refinancing the property - Or entering into new leases approved by all investors In a DST, all decision-making responsibility is passed on to the sponsor-affiliated trustee. The ability of the sponsor-affiliated trustee to make these decisions allows for: - More nimble management - The elimination of stress, delays, and the potential conflicting desires that can arise when all investors need to unanimously make key decisions **Structural Differences** DSTs and TICs contain some significant structural differences. In the more simplified DST structure, the investor needs only to execute a trust agreement for the DST. Additionally, since the lender will only be making one loan to the DST, it eliminates the need to conduct additional due diligence on each investor. In the TIC structure, each investor is considered a co-borrower to the loan; therefore, additional due diligence from the lender is likely to be required. Also, investors in a TIC deal typically need to buy their interests in the investment through a special purpose entity. Often this entity has certain legal requirements to be filled, along with dues to be paid on a regular basis. Years ago, TIC investments were the structure we most often facilitated for multi-owner deals but today, most of the deal offerings we see are structured as DSTs. Chicagoland 1031 Exchange can help you understand and decide which 1031 exchange structure is right for you. Topics: [Insights](https://blog.chicagoland1031exchange.com/insights-events/topic/insights), [News](https://blog.chicagoland1031exchange.com/insights-events/topic/news), [DST 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/dst-1031-exchange) [![Banner - Chicagoland 1031 - Availability Report CTA](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/Banner%20-%20Chicagoland%201031%20-%20Availability%20Report%20CTA.png?width=730&name=Banner%20-%20Chicagoland%201031%20-%20Availability%20Report%20CTA.png "Banner - Chicagoland 1031 - Availability Report CTA")](https://invest.chicagoland1031exchange.com/1031-exchange-properties) [Previous Post](https://blog.chicagoland1031exchange.com/insights-events/disadvantages-to-a-dst-1031-exchange) #### [Are There Disadvantages to a DST 1031 Exchange?](https://blog.chicagoland1031exchange.com/insights-events/disadvantages-to-a-dst-1031-exchange) [Next Post](https://blog.chicagoland1031exchange.com/insights-events/investing-in-millennial-housing) #### [Investing in Millennial Housing Choices](https://blog.chicagoland1031exchange.com/insights-events/investing-in-millennial-housing) - Latest Posts - Popular Posts [The DST Market Experiences Reduced Decline in Volume Compared to Commercial Real Estate Overall](https://blog.chicagoland1031exchange.com/insights-events/the-dst-market-experiences-reduced-decline-compared-to-commercial-real-estate-overall) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/1031-exchange) [Housing Affordability and Its Impact on Real Estate Investments](https://blog.chicagoland1031exchange.com/insights-events/housing-affordability-and-its-impact-on-real-estate) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/1031-exchange) [Why We Continue to See Opportunity in Multi-Family Real Estate Investments in 2022](https://blog.chicagoland1031exchange.com/insights-events/why-we-continue-to-see-opportunity-in-multi-family-real-estate-investments-in-2022) [ Insights](https://blog.chicagoland1031exchange.com/insights-events/topic/insights) [ News](https://blog.chicagoland1031exchange.com/insights-events/topic/news) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/topic/1031-exchange) [ COVID-19](https://blog.chicagoland1031exchange.com/insights-events/topic/covid-19) [ Coronavirus](https://blog.chicagoland1031exchange.com/insights-events/topic/coronavirus) [ Due Diligence](https://blog.chicagoland1031exchange.com/insights-events/topic/due-diligence) [![Chicagoland 1031 - Availability Report CTA](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/Chicagoland%201031%20-%20Availability%20Report%20CTA.png?width=700&name=Chicagoland%201031%20-%20Availability%20Report%20CTA.png "Chicagoland 1031 - Availability Report CTA")](https://chicagoland1031exchange.com/1031-exchange-properties/) ## Need help with your 1031 exchange? ### We're here for you. [![Let's Talk](https://no-cache.hubspot.com/cta/default/5268710/398420ba-42b1-4289-b473-217cda76c944.png)](https://cta-redirect.hubspot.com/cta/redirect/5268710/398420ba-42b1-4289-b473-217cda76c944) - Latest Posts - Popular Posts [The DST Market Experiences Reduced Decline in Volume Compared to Commercial Real Estate Overall](https://blog.chicagoland1031exchange.com/insights-events/the-dst-market-experiences-reduced-decline-compared-to-commercial-real-estate-overall) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [Housing Affordability and Its Impact on Real Estate Investments](https://blog.chicagoland1031exchange.com/insights-events/housing-affordability-and-its-impact-on-real-estate) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [Why We Continue to See Opportunity in Multi-Family Real Estate Investments in 2022](https://blog.chicagoland1031exchange.com/insights-events/why-we-continue-to-see-opportunity-in-multi-family-real-estate-investments-in-2022) [ Insights](https://blog.chicagoland1031exchange.com/insights-events/tag/insights) [ News](https://blog.chicagoland1031exchange.com/insights-events/tag/news) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [ COVID-19](https://blog.chicagoland1031exchange.com/insights-events/tag/covid-19) [ Coronavirus](https://blog.chicagoland1031exchange.com/insights-events/tag/coronavirus) [ Due Diligence](https://blog.chicagoland1031exchange.com/insights-events/tag/due-diligence) [Multi-Family Real Estate Investing, COVID-19, and Other Considerations](https://blog.chicagoland1031exchange.com/insights-events/multi-family-real-estate-investing-covid-19-and-other-considerations) [ Insights](https://blog.chicagoland1031exchange.com/insights-events/tag/insights) [ News](https://blog.chicagoland1031exchange.com/insights-events/tag/news) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [ COVID-19](https://blog.chicagoland1031exchange.com/insights-events/tag/covid-19) [ Coronavirus](https://blog.chicagoland1031exchange.com/insights-events/tag/coronavirus) [ Due Diligence](https://blog.chicagoland1031exchange.com/insights-events/tag/due-diligence) [COVID-19's Impact on Housing Prices](https://blog.chicagoland1031exchange.com/insights-events/how-covid-19-impacts-housing-prices) [ Insights](https://blog.chicagoland1031exchange.com/insights-events/tag/insights) [ News](https://blog.chicagoland1031exchange.com/insights-events/tag/news) [ 1031 Exchange](https://blog.chicagoland1031exchange.com/insights-events/tag/1031-exchange) [ COVID-19](https://blog.chicagoland1031exchange.com/insights-events/tag/covid-19) [ Coronavirus](https://blog.chicagoland1031exchange.com/insights-events/tag/coronavirus) [ Due Diligence](https://blog.chicagoland1031exchange.com/insights-events/tag/due-diligence) ## Need help with your 1031 exchange? ### We're here for you.   [![Let's Talk](https://no-cache.hubspot.com/cta/default/5268710/398420ba-42b1-4289-b473-217cda76c944.png)](https://cta-redirect.hubspot.com/cta/redirect/5268710/398420ba-42b1-4289-b473-217cda76c944) [![Chicagoland 1031 - Availability Report](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/Banner%20-%20Chicagoland%201031%20-%20Availability%20Report%20CTA.png?width=1900&name=Banner%20-%20Chicagoland%201031%20-%20Availability%20Report%20CTA.png "Chicagoland 1031 - Availability Report")](https://invest.chicagoland1031exchange.com/1031-exchange-properties) [![logo-white](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/logo-white.png?width=261&height=90&name=logo-white.png "logo-white")](https://chicagoland1031exchange.com/) - 1827 Walden Office Square Suite 500 Schaumburg, IL 60173 - [(224) 245-5281](tel:224-245-5281) [![brokercheck-white-140px](https://blog.chicagoland1031exchange.com/hs-fs/hubfs/brokercheck-white-140px.png?width=140&height=32&name=brokercheck-white-140px.png "brokercheck-white-140px")](https://brokercheck.finra.org/individual/summary/4624143) Chicagoland 1031 Exchange proudly serves clients nationwide, including California, Illinois, Florida, Colorado, Massachusetts, and more.   The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsors Private Placement Memorandum (PPM) which is solely available to accredited investors and accredited entities. DST 1031 properties are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last two years, and reasonably expects the same for the current year) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and Attorney. There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Because investor's situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation. This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of the services referenced on this site are available in every state and through every advisor listed. For additional information, please contact Nathan Kuhn at 224-245-5281 Chicagoland 1031 Exchange does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstances. Securities offered through DAI Securities, LLC, member [FINRA](https://www.finra.org/) / [SIPC](https://www.sipc.org/). Advisory services offered through Kuhn Wealth Management, Inc. (KWM), a state registered investment advisor. Insurance offered through DAI Securities, LLC. KWM dba Chicagoland 1031 Exchange is independent of DAI Securities, LLC. Copyright © 2022 Kuhn Wealth Management. 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