TENANT IN COMMON BROKER/DEALERS » LENDERS

TENANT IN COMMON

In 2002 the Internal Revenue Service issued Revenue Procedure 2002-22 which contains guidelines relative to the acquisition of Tenant in Common Interests as qualifying replacement property in an Exchange. Specifically, the guidelines established certain requirements that needed to be met so that the acquisition of a Tenant in Common Interest would be treated as an interest in real estate and not a security.

Sales of Tenant in Common Interests are handled through licensed broker dealers under the oversight of the Securities and Exchange Commission. Often, a broker dealer will represent several Tenant in Common sponsors, each of which may have one or more available property offering. Typically, the broker dealer will have completed its own analysis and due diligence of the property offering and the sponsor and  will provide their findings to prospective exchangors.

For a complete list of the benefits of Tenant In Common Interests and the specific requirements for qualifying, request our Trade Secrets of Exchanges.