TICs In San Francisco: A Buyer's Guide

Thinking about buying a Tenancy-in-Common (TIC) in San Francisco, but unsure how it compares to a condo? You’re not alone. TICs offer a path into some of the city’s most desirable locations, but their structure, financing, and resale are different from condos.
This guide gives you plain-English answers about how TICs work, what lenders expect, where the risks lie, and provides checklists you can use citywide.

What Is a TIC?

A Tenancy-in-Common (TIC) is shared ownership where you and other owners each hold a fractional interest in the entire property—not an individually deeded unit as in a condo. Your rights to occupy a specific unit and share costs are set by the recorded TIC agreement.

• TICs are common in San Francisco multi-unit buildings throughout central and outlying neighborhoods.

• Each owner occupies a designated unit but owns and maintains the property together, with rules on everything from leasing to maintenance set by the TIC agreement.

• TICs became popular because they allowed residents to co-own homes without condo conversion—the practice remains active across much of SF, from the Mission and Hayes Valley to the Richmond and Sunset.

How TICs Work in San Francisco

Your fractional interest and the TIC agreement are recorded with the property. Lenders, title companies, and attorneys use them to define your legal rights.

As a buyer, always:

• Request the full TIC agreement and any amendments.

• Check if any common mortgages remain on the building.

• Review permits, litigation, conversions, and all disclosures before making an offer.

Financing TICs in San Francisco

TIC financing is different than condo financing.

• Most TIC loans are fractional: you have a mortgage just on your share.

• Some buildings still have a single mortgage for all owners; this requires careful review and can impact your risk and refinance options.

What most lenders want:

• Larger down payments—20-30% is common.

• Slightly higher interest rates than for condos.

• Strong credit profile, low debt-to-income ratio, and cash reserves.

• Owner occupancy is often required.

• Title insurance for TIC interests, plus earthquake coverage if needed.

FHA/VA loans?

Available for some buildings, but rare—verify with a specialist up front.

Documents Lenders Will Review

• Recorded TIC agreement and amendments

• Deeds or any common mortgages

• Master insurance coverage

• Reserve documentation and budgets

• Rental history (if applicable)

• Title reports and pending assessments

TICs vs. Condos: Key Trade-Offs

Liquidity & Resale:
TICs have smaller buyer and lender pools—sales may take longer. Condos are easier to finance and refinance.

Financing:
Limited lender options for TICs, often higher down payments and rate. Condos have wider access to conventional loans.

Foreclosure Risk:
A foreclosure on one TIC interest can disrupt the whole property; condo foreclosures only affect individual units.

Governance:
TICs rely on cooperation and unanimous approval for major decisions. Condos are run by HOAs using CC&Rs and by-laws.

Maintenance & Reserves:
TIC reserve funds and upkeep standards vary by building. Condos typically have formal budgets and reserve studies.

Tenant & Rent Control:
San Francisco tenant protections and rent control laws can affect TIC buildings—check resident status, leases, and rules citywide.

Title & Conversion:
Title insurance may be different for TICs. Condo conversion is possible but requires city approval and a lengthy process.

Citywide TIC Due Diligence Checklist

• Current deed for your fractional interest; updated title report

• Full TIC agreement and amendments

• Check for shared mortgages and required consents

• Review for easements, liens, litigation

• Get financing pre-approval from an SF TIC lender

• Loan details: structure, down payment, rate, reserves

• Verify if refinancing is possible—ask about FHA/VA if important

• Occupancy rules; buy/sell and transfer restrictions

• Reserve funding and voting rules

• Comprehensive building inspection (especially seismic, plumbing, electrical)

• Request maintenance records and reserve study

• Confirm insurance details—including earthquake

• Review tax assessments and any recent changes

• Rent control and lease status for any occupied units

• Condo conversion status—understand city process if relevant

• Disclosure of disputes, meeting notes, sales history, any arrears

• Meet key co-owners when possible to gauge group dynamics

Practical Tips

• Include inspection and financing contingencies

• Request full TIC disclosures and documents up front

• Use an attorney who specializes in SF TICs before removing contingencies or closing

Moving Forward With Confidence

No matter where you’re buying in San Francisco—from Mission flats to Richmond duplexes or Sunset triplexes—early planning makes all the difference.

• Speak with a TIC-savvy lender before writing offers.

• Engage a real estate attorney for document review.

• Use a title company experienced in TIC insurance across SF.

As your advisor, I help you source, vet, and negotiate San Francisco TICs citywide. My job is to make sure your experience is smooth, transparent, and well-supported every step—from first search to closing day.

Ready to review a building or discuss off-market options?
Contact Oliver Burgelman for expert guidance and answers.

FAQs

What is a TIC and how does it differ from a condo?
A TIC is shared property ownership; condos give you a deeded unit with its own HOA.

How hard is it to finance a TIC?
Financing is available from specialized lenders, but with higher down payments and strict qualifications.

Can I get an FHA or VA loan for a TIC?
Sometimes, but it’s rare—verify before you start searching.

What happens if another owner defaults?
Foreclosure can affect the property—agreements should spell out remedies and protections.

Are TICs harder to resell than condos?
Generally yes, since fewer buyers and lenders are eligible.

Can a TIC convert to condos in SF?
Possibly—requires city approval and should not be counted on as the only exit strategy.

What issues should I check for in any SF TIC?
Review seismic safety, tenant status, lease details, permits, and parking—with help from your agent and attorney.

Oliver Burgelman
Broker Associate, Vanguard Properties
Phone: 415-244-5846
Email: [email protected]
Website: burgelmanhomes.com