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Don't Underestimate You TI Costs  (1.89 MB)

SB 133 - Title Industry Law Changes  (199 kb)

SB 133 - Title Industry Law Changes - 2009 courtesy of Dino Champagne - Asset Preservation Inc.

Using the New Tenancy-in-Common Interests in Section 1031 Real Estate Exchanges  (94.5 KB)

Executive Summary

- Real estate investors desiring to take advantage of traditional Section 1031 like-kind property exchanges were often stymied by the strict technical requirements to qualify replacement property for such treatment and by their inability to identify and take title to qualifying replacement property within the rigidly enforced deadlines.

- Since 2002, when Revenue Procedure 2002-22 was issued, the use of partial ownership interests in qualified replacement property, known as tenancy-in-common (TIC) interests, has substantially increased. To satisfy this demand for TIC properties, a rapidly expanding industry of companies known as "sponsors" has emerged to offer undivided tenants-in-common interests in real property.

- This relatively new technique affords the financial planner's clients a wider range of choices for qualified replacement property and may allow consideration of investment in commercial-grade real estate that smaller clients may not have been able to consider before.

- The article summarizes the technical requirements and the 15 conditions identified in Revenue Procedure 2002-22 as necessary for a TIC property to avoid being treated as partnership property (which is not eligible for Section 1031 treatment) and to qualify as like-kind replacement property.

- The expanding TIC industry, which pre-qualifies replacement property, may provide increased tax-deferral opportunities as the investor or financial planner may be spared the time and effort otherwise needed to identify and close on a suitable, qualified replacement property.

- The potential advantages and disadvantages of using TIC interests as replacement property in Section 1031 exchanges are explored.

Will Your Next Contract Be Set Up to Succeed?  (496 KB)

This is a great article detailing the loan process and the importance all allowing adequate time to complete the loan.