There refers to a place or position, a gesture to indicate state of mind or a certain point. Other definitions exist; however, they are not necessary here because people normally do not confuse those uses with their and they're.
- Example: The dressing room is over there. There is a place deep in my heart where I save all my love for you.
Their is possessive. It means that the object(s) being talked about belongs to two or more people collectively.
- Example: This is their book. They invited us to their house this weekend for dinner.
They're is the contraction of they are. No more explanation should be needed.
- Example: They're going to be late to the game because they hit traffic.
Memorization Tip: If you are not sure whether to use they're, say the sentence using they are. If it makes sense, then using they're is okay.
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