Tenancy in Common (TIC) and Condo Conversion Attorney
Property owners wishing to divide a building into condominiums need the type of representation we provide at MC Hall & Associates, Attorneys and Counselors at Law in San Francisco, California. Condominium conversion and tenancy in common (TIC) issues require the experience of a seasoned real estate attorney.
Condominium Conversions and the Annual Lottery
For many, purchasing a house may not be a realistic choice if they want to own property. A condominium may be in the price range of prospective purchasers. Real estate investors recognize the price advantage in offering condominiums for sale. They often form business partnerships to purchase an older house for the purpose of subdividing into condominiums.
While the results of a condo conversion can be rewarding, the process can be complicated and present many challenges. At MC Hall and Associates, we have assisted clients with condo conversions. For buildings with three or more residential units, the first step is winning an annual lottery that is conducted every December. The number of condominiums that can be converted in San Francisco is set at 200 per year, selected by lottery. However, buildings consisting of two units, both owner-occupied, may apply for condo-conversion without first winning the lottery. In the lottery, preference is afforded to applicants who have failed to win previously. On the other hand, the odds are stacked against entrants who have evicted protected tenants – elderly, disabled, or catastrophically ill. We can assist in managing the lottery entries and preparing the condo-conversion application and condo-operating documents, as well as in forming and advising homeowner’s associations.
Tenancy in Common as an Option
As an alternative to waiting for a lottery win, many property owners choose to enter into a tenancy in common (TIC). All names are placed on the same deed, which creates certain financing options. We help real estate clients draft agreements and consult with them following the execution of the TIC agreement. You do have the option of converting to a condominium should you win the annual lottery or qualify for certain exemptions from the lottery process.
A real estate investment that is well planned and implemented within the law can be financially rewarding for the owners. For more information, or to schedule an appointment with an experienced lawyer regarding joint tenancy or a condo conversion, please contact us by e-mail or call us at 415-512-9865.