I've been gathering data about Tenant In Common(TIC)ownership...and this was just posted today about regulatory concerns with Real Estate Brokers handling these types of deals. I think it is just a matter of time before it is figured out for Broker involvement, because it is like the Time Share was back in the 1970's, which was finaly regulated and brought mainstream big time in the 80's...Here's the info:
"Tenant in Common Transactions Under Scrutiny: How You Can Advise Regulators There is an implied concern that some of these investments that are sold as a pure real estate transaction may in fact be a sale of a security and therefore subject to state and federal securities law. Securities law may prevent Realtors from being fairly compensated for services rendered in a TIC transaction. A TIC is a form of real property ownership where a purchaser owns an undivided fractional interest in real property. Because of the confusing aspects of TIC transactions, NAR has issued two publications – the TIC Hot Topic Report, and the TIC Brochure - providing guidance to NAR members on the risks and rewards of the TIC marketplace. The publications provide an overview of the market, an analysis of the factors that separate securitized TICs from real estate TICs, the conflicted regulation of securitized TICs between state real estate laws and state and federal securities laws, and the risks to the investor and the real estate professional. NAR is in on-going discussions with the Securities and Exchange Commission to clearly define a process by which real estate professionals may participate, and be compensated, in the brokerage of securitized TIC interests. "
We shall see...just another trend to keep track of.