Rewsf, Home Owner in Santa Rosa, CA

how do you get out of a tic agreement?

Asked by Rewsf, Santa Rosa, CA Wed Jul 13, 2011

my friends bought into a tic in san francisco, but now have 2 kids with one on the way and there's not enough room, so they need to get out but feel trapped because it's a tic. rewsf@hotmail.com

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Dear Rewsf,

Your friends need to read their TIC agreement. I am in a sale now where the agreement read Co-Tenants had a right of first refusal.... and they executed that right so we had to say, nfortunately, good-bye to the wonderful first new Buyer . This caused many headaches. Are your friends in a group loan situation or individual fractional loans? When did they buy in? What are the plusses and minuses of the unit/complex/area. All of this makes a difference.

Then they should bring in a realtor (or two) to help price the unit. If the suggested price meets their goal, then they should sell it. You should tell them that last week (Weds to Weds), most TIC units sold for under the asking price. TICs can be sold, they are just harder because of down payment requirements are higher than with condos and all the other owners need to approve of the buyers. David Gellman has good articles on TICs on his website: http://www.g3mh.com. He is also a good one to ask for legal questions.


Cheers,
Sally
0 votes Thank Flag Link Wed Jul 13, 2011
Sometimes, the best way to sell a TIC is to sell it to another TIC. I have seen situations where one TIC ended up with either all of the property this way, or a controlling interest via voting rights. However, some TIC agreements have prohibitions against owning enough units to get controlling interest or total ownership unless they buy all units at once that they don't already own.
I always would start by talking to neighbors or the other TICs. In many cases, they know someone who wants to move in. This is similar to trying to sell a vacant lot in a subdivision. Sometimes, your best buyer is an immediate neighbor, because they can use the extra lot as an extension of their existing property, or they think it is a good investment. At the very least, they frequently know someone who wants in to be next door. Put the word out and wait a little while before listing it for sale to see if you can find your own buyer. You can then negotiate with a licensed agent to help with the transaction at a discounted commission.
Web Reference: http://leadingedgeprop.com
0 votes Thank Flag Link Thu Jul 21, 2011
Hello Rewsf,

The way to get out of a TIC Agreement is to sell their unit. There is no other way that I am aware of that you can get out of a TIC agreement. It sounds as though your question might be can they sell their TIC? The answer is yes and the first step would be to reach out to a Realtor, hopefully me ;-), to discuss their unit and what the value of it is in todays market. This will give them the information they need to determine the next appropriate move.

I am happy to discuss this with them if they would like, I can be reached via the below contact information.

Dan Dodd
Coldwell Banker
dan.dodd@cbnorcal.com
415-437-4572
http://www.DanDodd.com

Best of luck and I hope to hear from them.
0 votes Thank Flag Link Wed Jul 13, 2011
Hello Rewsf,

They may have an opportunity to turn their TIC home into an investment property by leasing through our Executive rental program. We have many owners that make enough rental income to cover their expenses plus a sizable profit. I would love to further discuss our options!

Warmest Regards,


James Decker
American Marketing Systems Inc.
(Office) 415.447.2006
jdecker@amsiemail.com
http://www.amsires.biz
DRE # 01889201
0 votes Thank Flag Link Wed Jul 13, 2011
Hi Rewsf-

Selling their interest would get them out from it unless they're underwater on it. In that case, they'd be looking at a short sale or foreclosure.

We can discuss further.

Thanks!

Rich Bennett
415.305.4911 cell

Zephyr Real Estate
DRE#01358540
0 votes Thank Flag Link Wed Jul 13, 2011
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