Meldodd,

As an agent who's familiar with TIC formation as well as resale, you are taking risks with you and your investment partners property, afterall - the definition of a TIC is a shared asset and shared liability. I'm happy you put a question like this out to the forum. Lance, Jed and Sally are all experienced and right on about hiring a pro. Remember we're not adversaries in this - we really try to partner with our clients, creating a value added proposal that serves them, after they're happy, we get paid by the seller. Simple as that.. BTW In every listing agreement you'll see the fee is negotiable in 10 point type.

Now onto your question about buying an off the shelf contract at a stationer's. There is no doubt You will serve yourself better by hiring a PRO. You only need to look so far as to your own TIC agreement to rediscover it probably governs some terms and conditions of the sale. If you're not a TIC attorney, nor a real estate agent with TIC experience you are headed down a path where tuition is -very- expensive at the U.H.K. (University of Hard Knocks.)

If the buyer is a friend or someone whom you know or a total stranger, it is increasingly more important you involve someone proficienct to guide you through this process, having proper disclosure and contract is vital to YOUR self interest in protecting yourself from future claims. DIY (Do-It-Yourself) stationary forms offer very limited liability and not an ounce of hand-holding or hotline help.

You casually put in parantheses something which made the hair stand up on the back of my kneck. Already a complex transaction is now further complicated by (AKA Rent to own my TIC.) An attempt to conduct a type of sale in a town where residential rent control rules. Please know you could possibly fall into a trap. Your contract could be overruled by local law. Off the shelf contracts don't tell you how to avoid another expensive lesson at the U.H.K. (University of Hard Knocks)

Please contact someone who is familiar with TIC's. No doubt experience has taught me they are more work both buying, selling and reselling. They have their rewards, trials and tribulations. For many homeowners in San Francisco they are sometimes the only way to get a foot in the door for homeownership. This is why NOW more than ever before I'd recommend speaking with a professional who specifically has TIC experience. (No need for you to pay someone else's tuition either.)

Again thank you for asking a great question!

BTW If you're interested - we are putting a TIC group for a great Noe Valley property at:

http://www.1494Noe.com

It is a DIY TIC - You and Your partners get to put the details from pets to garbage and noise in your own agreement. You and Your partners get to choose lenders. Have it YOUR way. -- So far the interested parties all have agents who are experienced in hand holding and the listing agents are available to lend their expertise all around. This property stands to get into the condo lottery after 3 years and it's entry will not be complicated by any Ellis Acted or complications of protected tenants. It will be delivered vacant. So we're looking for a good partner for the middle unit to see if we can put a group together. Rates on fractional loans can be bought down to 6% and jumbo loans for well qualified applicants are available.

Wishing you the best of luck, however you proceed. If perchance you'd like to meet either my partner Oliver Burgelman or myself - we'll be at 1494-1496-1498 Noe Street @ 28th Street this Sunday 5/2 1-4 pm

Mike Ackerman, CRS, e-Pro
415-695-2715
Zephyr Real Estate
ABZ@ZephyrSF.com
Top Producer of the Noe Valley Office 2008

Dear Meldodd,

Jed is right. What not just market it through a realtor? If you are using the realtor to represent you as a Buyer and a Seller, I am sure the realtor will agree to "help" you regarding commission.

Cheers,
Sally

Why not just put the TIC on the market and sell it?

There is a lot more to selling your interest in a TIC than will ever be capable in a standard form available from say NOLO press. Everyone I've been involved in is more work than selling a condo or a SFH and always involves attornies.

Trying to do this on your own, unless you are an attorney, is foolish.

Meldodd,

I'm understanding your question to be is there a standard land contract form available so you can save the money of having a lawyer draw one up and/or save the aggravation of trying to find one?

If so, I'm assuming that you want to sell to someone who doesn't have a good enough down payment and/or job/debt/credit history to qualify on their own. The short answer is I would talk to both a CPA and an attorney as there are some downsides and risk to doing this. If it's simply a matter of no down payment but in a year they'll have sufficient down payment you could do a lease-to-own with a combination of purchase agreement/option agreement/lease. If they had down payment but you don't want to do a new loan you could do wraparound financing.

If you need more detailed info call me anytime at 415.722.5549, but definitely talk to the acct & atty first, and here's an article on the subject - http://homebuying.about.com/od/financingadvice/qt/LandContra…

Regards,

Lance King/Managing Broker
lance@fixedrateproperties.com