INDIANAPOLIS — March 26, 2008 — The Tenant-In-Common Association (TICA) promotes the highest ethical standards in the commercial real estate industry with the release of its new 2008 Guide to Certain TIC Best Practices.
TICA is dedicated to educating tenant-in-common (TIC) professionals including sponsors, broker-dealers, registered representatives, real estate brokers, attorneys, accountants and due diligence firms and encouraging the highest ethical standards to better serve the investor. The new Guide recommends practices that will improve the quality and consistency of TIC and Delaware Statutory Trust (DST) programs for the investor, which will lead to smoother, better transactions.
“The revision to TICA’s Guide to Certain TIC Best Practices demonstrates our industry’s dedication and commitment to quality, ethics and expertise and should provide our members the tool to do right by their investors,” said Patricia DelRosso, TICA President. “I am proud to be associated with an organization that has developed this professional deliverable for its members.”
While taking real estate, securities, tax and lender regulations into account, the Guide informs TIC professionals how to properly structure, disclose, sell and manage TIC investments. This Guide is an enhanced version of the 2006 Guide to Certain TIC Best Practices produced by TICA. It has been improved in many areas as well as the addition of several new sections including source and uses of offering proceeds, sponsor track record disclosure in the Private Placement Memorandum (PPM), general solicitations, investor communications and gifts, travel, entertainment and personal purchases. The improved guide recommends guidelines for developing tables for the uses of equity and debt proceeds, a summary table to be included in the PPM with property name, location, projected and actual distribution rate and projected and actual net operating income and tables of appropriate track recording. These guidelines address unknown issues and provide a basis of the 1031 exchange process to make the process uniform in the industry.
The Guide is available to all TICA members, and all members are strongly encouraged to adopt the suggested guidelines into their everyday business practices. Practicing these guidelines in the ever-changing industry will foster trust and confidence with investors.
TICA continually strives to promote continuity, professional conduct and legislative and regulatory compliance to improve the industry. In addition to the Guide to Certain TIC Best Practices, TICA has a Code of Ethics and an A Champion of Excellence (ACE) Award program to encourage high ethical standards.
For more information regarding the new Guide to Certain TIC Best Practices, contact Jill Delaney at 317-663-4175.
About the Tenant-In-Common Association
Established in 2003, the Tenant-In-Common Association (TICA) was created as a non-profit organization focused on the success of the fractional ownership industry. TICA promotes the highest ethical standards to its members as well as provides education and information to the entire TIC community. For more information visit TICA or call 317-663-4180.