Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) is the government agency that enforces federal securities laws and regulates the securities industry, including investments offered to the public.

Suitability
Suitability is a requirement that any investment strategy fall within the financial means and investment objectives of an investor. The suitability requirement, stated or implied by various securities regulatory bodies, mandates that representatives determine the suitability of investments for customers before making recommendations.

Tenants-In-Common (TIC) Ownership
With the TIC ownership structure, multiple investors own an undivided fractional interest in an entire property and share in the net income, tax shelters, and appreciation. Each TIC owner receives a separate property deed and title insurance for their portion in the property investment.

TICs are subject to upfront fees and expenses that may impact investor returns and outweigh the tax benefits. TIC investments provide simplicity by eliminating active property management headaches. However, the owners do not have direct say over the day to day property management situations; they vote on major issues. Appreciation and income are not guaranteed and there is the potential for the loss of principal invested.

TIC Sponsor
A TIC sponsor is real estate organization that specializes in acquiring, syndicating, and managing commercial property on behalf of TIC investors. In structuring a TIC offering, it is important for the TIC sponsor to adhere to IRS guidelines (IRP 2002-22) so that 1031 exchange investors can participate.