Many investors are lured into investing in tenancies-in-common (TICs) due to the incentive of never having to pay capital gains taxes. These real estate investments are often multimillion dollar properties that are sold by issuing many TIC units, which gives each investor undivided ownership in the property. They are sold as private placements by brokers who are interested in making high commissions and are not focused on doing what is in the best interests of their investors.
At The Law Offices of Jeffrey A. Feldman, our securities arbitration and litigation attorneys have experience and proven success protecting the rights of investors in California and throughout the United States. We are committed to holding brokers liable for their misconduct and fraudulent activities.
TICs are not only real estate investments; they are also classified as securities that must be sold according to Financial Regulatory Authority (FINRA) standards. We understand the nuances involved in these leveraged investments and are prepared to thoroughly investigate your situation to determine if you have a claim against your broker or real estate agent.
Causes Of Action in TIC Cases
As an experienced and nationally recognized securities law firm, our lawyers know how to pursue a claim to recover your financial losses against broker-dealers and real estate agencies who sold you a TIC security. The most common causes of action for these cases involve:
The investment being unsuitable: The Financial Regulatory Authority (FINRA) regulates broker-dealers. In its rules and regulations, it specifically requires that brokers perform a full investigation to ensure the investments they are making with client funds are suitable for each client's needs.
Overconcentration of funds, or failure to diversify: When a broker fails to diversify investments, he or she puts you at great risk to lose your money. The broker is under a fiduciary duty to invest your funds properly, and over-concentration is a significant violation of that fiduciary responsibility.
Misrepresentation by the broker: If your broker misrepresented the benefits and consequences of the TIC, you may have a claim against the broker. Similarly, if your broker failed to explain all the risks involved with buying a TIC, or failed to properly investigate it, you may also have a claim.
Contact The Law Offices Of Jeffrey A. Feldman Today
To determine whether you are the victim of TIC fraud or other financial abuse, contact us online . We provide free consultations to new clients.
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