figures approximate a 10% TIC share of US median house prices | AL $23,108 | AK $36,500 | AZ $35,260 | AR $27,880 | CA $78,693 | CO $55,262 | CT $42,600 | DE $38,820 | FL $41,000 | GA $33,360 | HI $85,670 | ID $45,950 | IL $26,590 | IN $24,389 | IA $23,000 | KS $23,000 | KY $21,000 | LA $18,100 | ME $45,000 | MD $68,500 | MA $63,000 | MI $25,500 | MN $33,900 | figures approximate a 10% TIC share of US median house prices | MS $18,500 | MO $25,200 | MT $47,500 | NE $25,100 | NV $45,900 | NH $48,300 | NJ $44,250 | NM $30,500 | NY $83,800 | NC $33,600 | ND $29,600 | OH $23,200 | OK $20,718 | OR $50,400 | PA $27,000 | RI $46,600 | SC $30,000 | SD $31,000 | TN $32,500 | TX $39,000 | UT $54,600 | VT $125,000 | VA $99,000 - WA $61,500 | WV $16,800 | WI $31,000 | WY $84,500

Member Operational Guidelines

" your friendly member guide @ tic X "

ticX Member Resources & Operational Guidelines - Private & Confidential

As with any legally compliant trading platform ticX Members agree to keeping all ticX proprietary documentation and agreements confidential and are subject to the ticX Member Agreement and ticX Member Policy. Other Resources are provided only for the exclusive use of ticX Members and any Member found to have breached confidentiality including that of password security will result in the immediate loss of Member access.

The ticX Member Agreement, ticX Member Policy & ticX Member Operational Guidelines apply to all Member categories including Real Estate Agents, Developers and Private Vendors.

ticX Pty Ltd has developed a unique and legally compliant method of marketing the shared ownership of residential, commercial and rural property that delivers more affordable, less risky investment as an alternative to an individual purchasing the entire property.

The ticX trading platform is where properties can be legally OFFERED as being ‘available for shared ownership’. Whilst buyers have always been able to purchase a property as tenants in common ticX Members are in the unique position of being able to OFFER any ticX listed property to multiple buyers.

Note: In Australia & New Zealand, it is illegal for any person (or company) to ask a number of people to invest in a shared business venture, property or other investment, without complying with legal rules set down by the respective corporate regulator. Those rules, as they apply to ticX Members, are set out below.

How many co-owners to a property?

There can be several owners as tenants in common limited only by the ratio of cost to purchase a share compared to the purchaser’s cost of stamp duty and legals. But generally, for a single residential property and for practicality, the number of co-owner investors would range from 2 to 6.

For a single commercial/industrial or rural property generally, the number of co-owner investors could be from 2 to 20 (can be more, depending on the size, price & cash flow).

Conveyancing costs to buy an ownership share will vary depending on the complexity of the transaction.

Note: Settlement will generally occur once a take up commitment of 100% is achieved and can include the seller retaining a share as a co-owner.

New Listing: Vendor listing agreement/Appointment to Act, you can either insert the following clause;

“The Vendor authorises the agent to list the property for sale on the Tenant in Common Exchange (ticX) where it will be available for shared or sole ownership, whichever occurs first.

If sold to tenant in common co-owners, the property shall remain listed on the ticX indefinitely.”

Open this example of the REIQ Appointment to Act – Vendor Instructions. See Section 4.

Or alternatively, (or for an existing listing): the Agent, acting in the best interests of the Vendor, simply goes ahead and lists the property details on ticX – no written instructions required from the Vendor.

Resales of co-owner shares: The listing agent will automatically receive any requests to sell made by any co-owner of the ticX listed property who is wishing to exit the investment.

Note: When a property has been purchased by two or more co-owners as an investment, this usually means the property will be ‘managed’ professionally by the listing agent or other local licensed ‘real estate agent’ or ‘resident letting agent’ to deliver the best possible return to the co-owners during the term of the Investment.

Properties being offered for shared ownership (ticX Listed) can be identified by the ‘ticX Listed’ sticker on the For Sale sign and in other forms of advertising.

When a ticX Member advertises a property for sale, the advertisement will simply contain the ‘ticX Listed logo’ to
indicate that Shared Ownership is Available. Of course, any ticX Listed property may also be purchased at any time by a single buyer in the usual way. 

IMPORTANT NOTE: Any advertisement that purports to be seeking multiple investors that is placed in the public domain press, must include the following statement: “Any implied offer herein is an excluded offer pursuant to Section 1012E (5) & (8) of the Corporations Act 2001”

Let people know a property is Available for Shared Ownership on your SITE SIGNS, order your ‘ticX Listed’ stickers & “ticX Listed” Logos here.

DOWNLOAD DRAFT ADVERT EXAMPLE

OPEN HOUSE/DISPLAY APARTMENT HANDOUT 1

OPEN HOUSE/DISPLAY APARTMENT HANDOUT 2

OPEN HOUSE/DISPLAY APARTMENT HANDOUT 3

Item 4 Page 5 gives professional property managers/letting agents the opportunity to secure a long-term management by inserting their details here.

5a. You date the Deed where provided on the heading page.

5b. You will complete IN FULL the details required in ITEM 1 & ITEM 2 of the FIRST SCHEDULE together with the Managing Agent details in ITEM 4 of the FIRST SCHEDULE

5c. On the Execution page following the FIRST SCHEDULE insert the date of the TIC co-owners deed and have the TIC co-owner sign & you witness their signature.

 Note: Annexures A, B & C are to be attached to the TIC Deed after the EXECUTION page & Annexure B, PURCHASERS DEED, is to be left blank as it is for use ONLY on a resale sale of a TIC co-owners’ interest.

Note: The Purchaser’s Deed (Annexure ‘B’) is for a resale of a TIC share where the previous TIC co-owner is opting out of the TIC Deed and the new TIC co-owner is opting into the TIC Deed for that property. This is NOT a Contract of Sale but will accompany the Contract of Sale.

 
Note: All parties to a TIC Deed, including any new investor replacing a co-owner shall be required to execute a TIC Deed in the required standard form without alteration or amendment of any kind.

Download TIC Deed here

Land can be owned by a ‘sole proprietor’ (the owner) being either an individual or a company, however land can also have more than one owner.

There are two common types of co-ownership of land:

  1. Joint tenancy (involves right of survivorship where one person dies the other person is automatically entitled to the deceased person’s share of the land).
  2. Tenancy in common (each investor is registered on title as a tenant-in-common fractional owner with a separate and distinct share in the property that can be willed, sold or mortgaged separately).

A tenancy in common is created when a property (or part of the property) is sold and is then owned by two or more persons in equal or unequal shares. Each co-owner’s interest is separately registered on title.

ticX was built around the concept of tenancy in common ownership of land to serve as a co-ownership trading platform.

The ‘Intent to Purchase a Share in a Property‘ form!!

This works best if you pre-populate the property details and the Vendor’s Solicitor’s details and keep it in your Client’s (Vendor’s) file ready to send out to interested parties.

Download the Intent to Purchase a Share in a Property form here.

Settlement will occur once a take up commitment of 100% is achieved and can include the seller retaining a share as a co-owner.

Property held within an SMSF could come under ASIC’s regulatory remit, as would a situation whereby someone is comparing the worth of property to equities. That might be financial advice because you’ve touched on shares.

ASIC is concerned that with the increased popularity of SMSFs and property investment, real estate agents may not realise they are providing financial product advice and need an Australian financial services licence when making recommendations or statements of opinion to a person to use an SMSF to invest in property.

Individuals caught giving financial advice whilst not licensed to do so, face fines of up to $34,000, or two years imprisonment while corporations face fines of up to $170,000.

If suggesting a property may be suitable for SMSF investment we suggest you use wording such as: “Investment in this property may also be suitable for Self Managed Superannuation Funds (SMSF’s). Note: Before investing using your SMSF, you should first seek advice from your accountant or investment adviser.”

A vendor (property owner) offering their property to multiple investors/buyers without engaging a real estate agent will not need an AFSL. A real estate acting on behalf of a vendor to offer a property to multiple investors/buyers does not require an AFSL as it’s the ‘vendor’s offer’ not the agents.
Settlement will occur once a take up commitment of 100% is achieved and can include the seller retaining a share as a co-owner.

Small-scale managed property investment schemes

Note: Direct ownership registered on title of a TIC share in property is not a ‘Managed Investment Scheme’ therefore the following information does not apply to direct ownership of ticX Listed properties.
Small-scale (managed) property investment schemes are also known as ‘managed funds’, ‘pooled investments’ or ‘collective investments’. Generally, in a managed investment scheme:

  • multiple investors contribute money or money’s worth and get an interest in the scheme (‘interests’ in a scheme are a type of ‘financial product’ and are regulated by the Corporations Act 2001 (Corporations Act))
  • money from the different investors is pooled together or used in a common enterprise
  • Investors do not have day-to-day control over the operation of the scheme.

Note – Legal Limitations on small-scale ‘managed’ investments: A small-scale ‘managed‘ property investment scheme has a limit of 20 retail investors – that’s 20 in 12 months not exceeding $2million.

TicX members are discouraged from being involved in ‘managed’ investments, as it’s a legal minefield and ignorance of the law in no excuse for breaching the regulations.

Sophisticated investors are outside the count of 20 and the $2million limit, however the promoter of the scheme will require a sophisticated investor certificate from each sophisticated investor.

Here is an example of a sophisticated investor certificate. Download pro forma Sophisticated Investor Certificate here.

Warning: You cannot use multiple companies (with common directors) to try and get around the 20/12/$2million (per vendor) limit. If in doubt you should seek independent professional legal advice.

Investor meetings can be advertised in the public domain press, as you are not promoting a specific offer seeking multiple investors, but merely advertising an event.

Important: Before any investor meeting commences ensure all attendees have registered by either subscribing & viewing the listing at ticx.com.au or have completed an ‘Investor Registration’ form.

Advertising an Investor Meeting: DRAFT example

Investor Registration Form: Investor Registration – pro forma

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