Tenents in Common--Any good experiences?
I have been trying to figure out an alternative to a condo conversion for a small three family that I will live in with my family, and my father will occupy the second floor unit. We were hoping just to sell the top apartment (vacant) but the cost of a condo conversion is so steep….
I have been trying to figure out an alternative to a condo conversion for a small three family that I will live in with my family, and my father will occupy the second floor unit. We were hoping just to sell the top apartment (vacant) but the cost of a condo conversion is so steep. Each unit is completely independent, own heat/hot water/gas etc… the only common area is the stairway. I’ve talked to a number of well-known Brooklyn attorneys who make a fortune on the condo conversions and I’ve asked is there an alternative to the condo, can’t we just sell one apartment and amend the deed?
Is this the same thing as a Tenants in Common agreement? Has anyone us this structure to sell an apartment to a stranger on the open market? Any feed back from people with experience would be appreciated.
Thank you!
the answer is no, for the simple reason that your house is a three-family. it may be three totally separate units, but as far as the city (as well as whatever bank holds your mortgage) is concerned, it’s a house. and think of your potential buyer? what can you supply him/her with? a deed? (condo) a share certificate? (co-op)
tenancy in common is usually used to transfer property between family members without requiring the specific provisions of a will. it will not work in this case because you’re trying to sell only a specific piece part of your house.
I believe the answer is “No” unfortunately.
I am no expert, but I believe this is not an option since TICs are really the same thing as a partnership. They aren’t a way to divide a property up – like you own the top floor i own the bottom three floors. They are simply a way t divide interests – like own TIC owner owns 25% of the property and another owns 75%. But the 25% TIC owner would still own 25% of the ENTIRE property, just like a husband and wife each own 50% of the entire property. As far as I know, the only way to do what you want is to do a condo, which will carve out the specific area the other owner will own, or do a coop, which also specifically gives the owner a propriotary lease on their specific apartment.
Tenant in common is a great idea if you want to end up suing each other. The condo conversion legal fees are nothing compared to the litigation arising from tenant in common situations gone bad, ie all of them.
Thanks for the quick response… But I’ve done quite a bit of research including the NYT and archives and none address my situation. I own a building, can I just sell an apartment without going through the condo conversion process. And if the only alternative is the tenants in common, how exactly does it work and why aren’t more people doing it?
Search archives and NYT, lots of info on this