SirkinLaw APC has been a pioneer in tenants in Common Agreements (ICTs) with related seralmic rights, which are often used to replace the subdivision of a property when a true subdivision is impossible or excessively expensive. In 1985, Andy Sirkin created the legal and transactional structure, which became the industrial standard for this type of ICT. In the years that followed, Andy`s innovations were the first state-recognized real estate teacher for ICTs, the first to obtain government approval for a large-scale sale of ICT, the first to convince institutional lenders to offer individual financing, and first to develop credit documents and lender instructions for fractional financing. In recent years, the type of condominium agreement designed by Andy nearly 30 years ago has sometimes been about one/three of all home sales in San Francisco. An ICT agreement should be long enough to cover all important, well-organized issues (including an index or table of materials) so that a necessary provision can be quickly and easily located and written in an understandable language yet sufficiently nuanced to avoid any ambiguity or flaw. In the unlikely event that you will already need to use your ICT agreement, you want to find a section that directly addresses your problem and clearly provides a solution. It is unlikely that a “short and simple” ICT agreement will directly address your specific problem and effectively render it useless. In addition, ambiguities or omissions in the “short and simple” ICT agreement can be exploited by an aggressive owner or lawyer to exploit other owners. Some apartment buildings and commercial complexes are sold to investors who hold the title as tenants.
If it is a syndication and there is no SEC filing, ask a lawyer to verify the contracts and deeds. When local laws limit the conversion of existing buildings into condominiums and co-operatives, the common condominium right (TIC) offers a legal and generally less costly alternative to the purchase of a condominium or co-operative. In an ICT, the building is not divided into separate plots, and no one has any particular space. The tenant of the ordinary owners creates a condominium agreement by signing a contract that gives each landlord the exclusive right to use a house, dwelling and/or other area. This arrangement is most often used for multi-family buildings, but also for multi-family and commercial properties. A potential tenant should always assess the financial capacity of other members of the group, even if ICT does not involve joint funding. If an ICT agreement has already been prepared, the buyer should keep an experienced lease with the common lawyer to review the agreement and address and explain the many important issues related to the ownership of the group. If there is no shared rent, the most efficient and cost-effective approach to creating a lease is for the whole group to retain a single lawyer to prepare an ICT agreement specifically tailored to the Group`s property and needs.