Tenant In Common Question

Curious if anyone on the board has experience dealing with TIC properties. I am looking at a property currently owned by a group of TICs, the majority TIC owner wants to force a sale, the minority TICs want to refinance and remain in the deal. Trying to understand how to approach the deal where I can bring in new equity, keep the TICs in who want to stay in, and buy out the majority TIC so everyone is happy.
Thanks
In Buying Property - Asked by Eric G. - Jul 2, 2012
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Answer(s)

REMAX F.
Broker/Agent
Sugar Land, TX

what type of entity is the TIC under. feel free to contact me on arthurconfait@gmail.com, I am a Realtor and I might be able to answer your question

Jul 4, 2012
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Chuck W.
Broker/Agent
Cheyenne, WY

While a TIC does not have to be governed by a written agreement it should be. I am a real estate attorney and have dealt with the good, bad and ugly of TICs which can often feel like a Tick once you are "invested." If a TIC agmt exists it usually appoints a manager who acts like a general partner although all members will be held liable for any actions against the property in absence of an indemnity agreement. The TIC agreement usually has provisions for a sale such as 60% must approve a sale or it must first be offered to existing members etc. The problem normally occurs with title companies who want 100% to agree regardless of the TIC agreement before they will issue a title policy.

Jul 5, 2012
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Daniel D.
Corporate Investor
Chicago, IL

Chuck is completely correct in his assessment. I own a title company underwritten by Fidelity National Title and they require all TIC's to sign off on the contract of sale in order to underwrite title. This means getting the tenants who you are not purchasing an interest from to agree to sign a contract of sale stating they are aware they are receiving no money for their interest and agree to let the TIC in question sell their interest without restriction.
Normally these types of deals will cost you a ton of time to negotiate and then die at the closing table. Better to move on to something that will make better use of your time.

Jul 12, 2012
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Lou A.
Corporate Investor
Northlake, IL

Treat it like a partnership...

Oct 14, 2012
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