in

Rights to contact other TIC owners

Last post 10-07-2008 12:34 PM by 1031TIC. 1 replies.
Page 1 of 1 (2 items)
Sort Posts: Previous Next
  • 09-19-2008 7:57 PM

    Rights to contact other TIC owners

    I see that some sponsors provide names and contact information in the closing documents, and others do not provide this information. What are my legal rights to request and obtain the names and contact information of the other owners from the sponsor? I don't find anything on this in the PPM's.

    • Post Points: 5
  • 10-07-2008 12:34 PM In reply to

    Re: Rights to contact other TIC owners

    You will find that with many of the securitized and/or leveraged real estate TICs they do not provide co-owner contact information.  In my personal opinion (I'm no CPA or lawyer, so consult with your tax or legal advisor if you want an "official" ruling of some sort), I consider that practice to violate Revenue Procedure 2002-22 by limiting personal control over your investment.  For example, if you retain the option of firing the property manager, as stipulated by the RevProc, how do you go about doing that if the property manager is your only connection to the other co-owners?  I'm sure they won't be too willing to act as the mediator to fire themselves.  That is just one of many questions raised by that practice.

    Some sponsors, such as Rockwell TIC and RealtyNet Advisors, do indeed provide each owner with the names and contact information for your co-owners.  At the same time, there is still a property management company available, so you have the best of both worlds - you can use the property management company as your primary "go between", or you can contact your co-owners directly.  I work closely with both of these sponsors because (and again, this is my personal opinion) I feel that they most closely adhere to Section 1031 and Revenue Procedure 2002-22.  I am an MBA and have done quite a bit of research on these matters (I am also a state-certified real estate instructor concerning 1031 exchanges and tenancy-in-common investing), and do not know of any other sponsor who more closely adheres to those guidelines.

    If you would like to chat a bit more about your question, feel free to call me at 800-872-1031 (ask for Scott) or call me directly at 801-949-1100, and I will be happy to discuss this topic with you (along with any other questions you may have).

     Regards,

    Scott Rutherford, TIC/1031 Exchange Consultant

    • Post Points: 1
Page 1 of 1 (2 items)
Copyright 2006-2009 by Exeter 1031 Exchange Services, LLC. All Rights Reserved.  Privacy Policy   |   Terms of Use   |   (866) 393-8377