New York Based Tenant-In-Common Investments (TICs) La
Tenant-In-Common investments (TICs) allow a small group of investors to co-invest in a property without setting up a limited liability company. Benefits include certain tax privileges without the need to manage the property. However, there are cons to TICs as well, which investors have to properly consider.
If you have been misguidedly persuaded to invest in a TIC and suffered unjustified losses as a result, Weltz Law is here to provide professional legal guidance and assistance. Call us at (877) 905-7671 now.
Tenant-In-Common Investments (TICs) Explained
Used predominantly in the real estate sector, TICs allows investors to pool together and invest in a property. They are closely tied to 1031 like-kind exchanges as investors who go for this option actively solicit funds from other investors to form a TIC investment. Hence, TIC investors benefit from continued tax deferment status as they pool together to group their investments and locate replacement properties.
In addition, TIC investments allow the funds from a 1031 exchange to be promptly spent to acquire the new property. This means less time sitting around in an account, vulnerable to misappropriation. TIC investments are attractive for investors who wish to own a stake in a larger property, and do not have the financial ability to acquire one by themselves.
Proving TICs Losses
While TICs come with many benefits as listed above, there are cons to it as well. Most people would assume that investors go into it knowingly, having acknowledged and accepted the risks, but that is not always the case. Sometimes, stockbrokers can fail to exercise the highest level of care when advising their clients about what investments to make, whether deliberate or unintentional. Some brokers do this at their client’s expense as recommending certain investments will result in hefty commissions for themselves.
Some of the risks involved in TICs include overpricing and excessive fees. Oftentimes, the costs and securities of a TIC investment can add up to more than if the investors just paid the taxes in the first place. As most TIC investors do not know each other, it is also the broker’s responsibility to foster a good working relationship between them to facilitate the making of business decisions. Failure to conduct due diligence can result in unjustified financial losses.
Recovering TICs Losses
If you have been misled by your broker or not been adequately warned about the risks of a TIC investment, you have legal recourse. Your broker could be guilty of negligence and if it is proven that they have failed to act in your best interests, a recovery can be made in your favor.
Discuss Your Tenant-In-Common Investments (TICs) Losses Today. We Represent Clients Nationwide.
Have you unknowingly invested in a TIC without being aware of the associated risks? Has your broker misrepresented information or pressurized you into making an unsuitable TIC investment? If so, let our knowledgeable attorneys at Weltz Law help. Our team comes with a collective experience of over 30 years and can assist you with exploring your legal options.
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