Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Workman Securities-Sale Of Tenant In Common (TIC) Investment Leads To $300k FINRA Hit

A tenant in common investment (TIC) is an investment in real estate which is co-owned with other investors. Since each co-owner hold a deed to his undivided share of the real estate, the investment qualifies as a like kind exchange under Section 1031 of the Internal Revenue Code.

TICs are appealing to taxpayers who own real estate but are tired of the management headaches associated therewith. While sound conceptually, many of the commercially marketed TIC investments are not suitable for most investors since they are often overpriced and based upon unsound financial structure.

A couple from California recently received a favorable arbitration award from a Financial Industry Regulatory Authority (FINRA) arbitration panel. FINRA Case#12-259.

Workman was sued by the couple for bad advice given by Workman's broker in connection with the sale of some of their real estate holdings and use the proceeds to invest in a Tenant in Common (TIC) investment called Hawaii Self Storage 1, LLC.

The couple wanted their money invested in a safe, secure property and to minimize their tax impact. They did not want a risky investment. They testified that the broker failed to disclose the adverse tax ramifications and the complexity of the TIC, thereby making the investment unsuitable for them.

Workman Securities Corporation was found liable by the arbitration panel ordered to pay the couple $300,000 in compensatory damages.

Were you advised to sell real estate and invest in a tenant in common investment? If you have losses as a result, you may be able to recover all or a part through FINRA arbitration.

Nationwide representation.

Free Consultation.

Rex Securities Law

561 391 1900

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.