As the current crop of TICs converts to condos, I’m seeing many owners listing their TIC interests prior to the actual condo conversion of the entire building. This means the buyer is expected to step in at the tail end of the condo conversion and work with all existing owners as they refinance and everyone completes the conversion process.
In other words, whether there’s a group loan or fractional financing in place, all new condo deeds have to record simultaneously. If there is one owner in the group who doesn’t have a loan, that owner needs to wait until everyone’s refinancing/new purchases are completed prior to obtaining a condo deed.
This is a very important fact to know when you’re getting ready to sell your TIC interest as a condo. It’s critical to communicate with TIC partners so everyone is on the same page about all owners’ refinancing or sale plans. You’re all in this together until the condo conversion is complete, and no one can record a condo deed any earlier or later than anyone else.
If you’re a TIC owner on the verge of condo conversion and you’re aiming to sell before your conversion is complete, make sure your TIC partners know of your plans. One of them may also be planning to sell within the same timeframe, and it’s most advantageous to go on the market at the same time. It won’t do anyone any good if one owner has a buyer in place and then discovers that another TIC partner is going on the market two weeks later. That sequence of events will only delay the first sale, and the lack of coordination could actually kill both sales if buyers grow impatient.
And if you’re a buyer, make sure you receive a deed that clearly states the unit is a condo. You’ll have a new lot number, and you will not be sharing title with anyone else.