San Francisco Real Estate - Residential

Increasing popularity of Tenancy in Common

Renters are a huge voting block in San Francisco. As a result, they have a lot of power to influence City politics. They continually lean on the government to change laws in their favor; limiting condominium conversions is just one of the examples. Because so many owners of small, multiple unit buildings were converting to condominiums to avoid the oppressive rent control laws, the City stepped up and passed laws to make it harder to do this.

However, the market always finds a solution. Today, the easiest way for multiple parties to own property is as Tenants in Common. In the past the biggest challenges to this type of ownership has been the financing, not necessarily in the beginning when everyone gets together to buy the building, though that can be troublesome when buyers come in and then drop out. But it can be challenging later on when one or more of the parties wants to sell while the others want to stay.

For example, onc of biggest problems has been, if someone wanted to sell his "share" at a time when mortgage rates were higher than when the group originally purchased, the whole package would have to be refinanced when the new buyer comes in. How to compensate the people who are staying so that their financial positions are not changed from their original position was one of the hardest obstacles to overcome.

However, with the introduction of new financing options where individual interests are separately financed, this form of ownership has opened up and become more attractive to buyers. Where condominium conversions are costly and burdened with bureaucratic red tape, Tenancy in Common becomes a very attractive alternative.

The proof of this is the latest in continuing education for Realtors. On September 20, 2007, Andrew Sirkin in cooperation with Old Republic Title Company are holding a Tenancy in Common, Condominium Conversion and Fractional Ownership workshop at Fort Mason Cnter, Building A in San Francisco. The seminar is open to licensed professionals and goes from 12:30-3:30 PM. Space can be reserved by calling Bonnie Mannion at 415-552-5192 or e-mailing her at bmanning@ortc.com.

- Mick Orton

posted by SFResidence.com @ 9:09 AM