December 13, 2007
Release No. 34-56779: File No. S7-26-07
NAR Exemption Request
SEC: Request for Comment
To whom it may concern;
I appreciate the opportunity to comment. I hold both real estate and security licenses and have been active in one or the other field for over 30 years. I have done over 450 tenant-in-common (TIC) transactions in the last 7 years. I am also a founder of the Tenant- in-Common Association (TICA) and currently sit on the board of directors of TICA.
In concept I am in agreement that a commercial realtor can possibly add value and help investors understand real estate and they should be compensated for that. However, I do not agree with the NAR exemption request as it is written. As written it circumvents the broker dealer communities established due diligence processes that are in place to protect investors.
A more acceptable approach would be to have information about TIC properties and sponsors made available to realtors through the existing broker dealer community. Given a client wants the advice from their realtor about the real estate in question, let them provide it and let them receive an advisory fee for doing it, but allow that to happen after broker dealer due diligence, selling agreements and supervisory oversight has taken place. I would encourage the SEC not to get the cart ahead of the horse. TIC's sold to unrelated parties need the full protection of existing supervisory oversight, there is nothing to be gained by allowing realtors to go around us (registered representative and broker dealers).
Thank you again for the ability to comment.
President & Founder, Registered Representative