So what is the real impact of the new legislation regarding TIC conversion to condos?
There seems to be a lot of confusion about this, and there should be –
it’s one of the worst pieces of legislation we’ve had the misfortune to
have affect our clients and our industry. Here’s a short summary of what
has happened and what some potential issues are:
• The condo lottery as we have known it in San Francisco that has allowed 200 units annually to convert to
condominium will be suspended for a minimum of 10 years regardless of
any legal challenges to the law.
• Upon resumption of the lottery 5 and 6 unit buildings formed as TICs will no longer be eligible to convert.
• 3 and 4 unit TICs will need to meet increased owner occupancy
requirements in order to become eligible for future lotteries, making it
harder for these groups to convert.
• The fee set at $20k per unit
to convert, reduced by the number of years a building unsuccessfully
participated in past lotteries, was effectively increased. The reduction
is now based upon the number of years each applying TIC owner has
Tenant activists said the
trade-off for these restrictions was that the thousands of TIC units
would be able to bypass the annual condo lottery and convert their units
to condos. While it is debatable whether these additional
restrictions represent a fair compromise, it’s only a compromise if TIC
owners actually get to bypass the lottery. Whether or not that will
happen is a huge if, because tenant advocates also put in “poison pill”
language in the legislation that will suspend the bypass program and the
normal condo lottery if anyone files a lawsuit challenging the
legislation, until the lawsuit is resolved. So there is a very real
possibility that few, if any TIC units will be able to convert under the
bypass program – and that the normal lottery will be disabled for a
long time. Brilliant.
I spoke with a real estate attorney today
who owns a TIC and is hoping to bypass the lottery, and according to
him the planning department doesn't even have the applications yet.
And what happens to the $20K in fees of all those who put down their
money to convert and a lawsuit is filed (I can’t imagine there aren’t
people lined up to file them)? Nobody knows, but I can see how all those
funds might very well sit in limbo while everything gets sorted out,
and we all know that lawsuits, especially ones on issues as contentious
this, do not get resolved quickly.
This legislation makes no
sense. It likely offers nothing to TIC owners and suspends the lottery
while doing so. Tell your supervisors to fix this horrible legislation
as it does no one any good.
For more information on TICs or other Real Estate matters contact:
Lance R King - Broker/Owner
King Realty Group
50 California Street Suite 1500
San Francisco, CA 94111
Lots of Sellers hire their friends or the agent who helped their parents buy 20 years ago or some other off handed means without really vetting that agent/broker because it's a sellers' market and doesn't really matter - right?
Wrong. In a market like this just about anyone can get you into contract, even with the shoddy marketing we see all too frequently. But even in a Sellers' market almost every deal hits at least one
bump in the road, and how your representative handles that bump(s) is
usually the difference between a closed sale and a property that goes
back on the market.
And if your representative doesn't handle those bumps well and it does go back on the market, most likely the next offer (s) that come are going to be lower so who you hire is of paramount importance IN ANY MARKET.
If you are thinking about selling, find out how our team approach to real estate and business model can not only frequently get you better offers faster, often without even going on the MLS, but save you money, too.
For more information/no-strings consultation:
Lance R King/Founder-Managing Broker
415.722.5549 - Cell
on the web:
Pretty much everyone understands that the market in San
Francisco has really heated up over the last year. It's gotten to the point now
where even properties in what used to be fringe/second tier neighborhoods are
getting multiple, over asking price offers. So what's a buyer to do?
You could just wait, but there is another option. Your best shot in the this
market is getting in to see properties before they ever hit the MLS, and more
and more places are going to market this way. It's less stressful for both
buyer and seller, and it gives buyers a chance to make an offer without the
frenzy of multiple offer chaos.
In many cases more reasonable prices can be obtained, especially when the
seller wants some extra consideration - long close, rentback, etc...
It's important to note that an overwhelming majority of agents/brokers don’t have
access to these properties, and if you are out of the off-market loop you are
missing out on a lot of places as more and more properties are going to market
If you are a qualified buyer and would like access to off market and upcoming
properties before they hit the open market you can reach me by cell or email:
Dear Colleagues, Buyers, & Sellers,
Under the auspices of redesigning our website and our look, we have also decided to change the company name to King Realty Group.
my new email: firstname.lastname@example.org
new website: www.king-realtygroup.com
We will continue to provide the same excellent service to colleagues and clients alike.
Lance R. King - Founder-Managing Broker
King Realty Group
We just put 3432 Saint Marys Rd on the market. With virtually no inventory on the market this is even more interesting of a property.
The 3 BR 2BA main house has been completely redone to create a sunny open floor plan, and also has a huge additional bonus room plus a separate 1BR
1BA in-law unit for rental income/au pair/guest quarters or office space. There is new
plumbing & electrical in the kitchen and baths, a new master bath suite, all new
kitchen and appliances, in house washer/dryer, new roof, new landscaping, new
deck, new concrete & more. Comes with 2 car garage and lots of yard space.
Only one block from Stanley middle school and close to downtown Lafayette shops
and restaurants and BART station. Priced at $959K
Open Tue Dec 4 from 10:30 - 1 and Sunday Dec 9 from 2 - 4 and avail to see by appt.
for more info go to www.3432saintmarysrd.com
Located only 2.5 blocks from the 24th Street commercial district, these
new luxury condos give you easy access to Whole Foods and all the other great
nearby shops and restaurants, and those working down the Peninsula easy freeway
access. All units come with high end finishes, tons of sun and light, hardwood
and tile floors, gourmet kitchens, parking, storage, and private outdoor space.
1266 Dolores - 2BR 2BA w/ 1 car parking & private yard - $899,000
1268 Dolores - slightly larger 2BR 2BA w/ 2car parking & private yard - $929,000 - www.1268dolores.com
1270 Dolores - Top Floor 2-level 3BA+ 3BA w/3 decks, views, & 2 car parking - $1,249,000 - www.1270dolores.com
For more info or private showings contact Listing Broker Lance R King (DRE# 01384425)
After things started to cool down in 2006 the market turned in Buyers' favor for a long time. Not any more. The combination of huge influx of money, cheap financing, and lack of inventory has had huge positive impact for sellers over the last 6-8 months.
Our Buyer clients are frequently coming up against properties where there are 10+ offers, many over ask. Just looked at a 2 unit in Cow Hollow for $2.5M and they had 8 offers in a little over a week.
We had a 4 unit TIC building that we couldn't give away last year. Listed it a couple of months ago and all 4 were in contract within 14 days at full price.
SELLERS, if you have been thinking about selling your property, Now is the time, but my opinion is that this window of opportunity will not last as long as the last time because Europe and the rest of our country are in turmoil and the zynga, twitter, facebook money isn't going to last forever. Back in 2005 everyone was feeling good and doing well.
We have tons of buyers that may want to buy your property, and there are a whole lot more out there, many with all cash, who are waiting for your place to come on the market. Contact us now for an evaluation of your home, condo, tic, or multi-unit property - it may be time for you as well....
For a free expert consultation contact Owner/Managing Broker Lance King at 415.722.5549 or email@example.com