TIC Cheat Sheet — Claudia Lee · SF Real Estate Insider

What is a TIC?

Two or more owners each hold a fractional interest in a single property. You own a share of the whole building and have exclusive rights to your specific unit — like a condo, but structured differently on paper.

Most SF TICs are SACOs (Space-Assignment Co-Ownerships): each owner gets exclusive use of a defined unit.

TIC vs. Condo — Quick Compare

	TIC	Condo
Price	10–20% below comparable condos	Market rate
Loans	Fractional, specialized lenders; rates ~0.25–0.75% higher	Conventional, any lender
Title	Shared title, one APN, one tax bill (split)	Individual title, separate APN
Risk	Separate loans — no cross-default	Individual loans
Rent Control	Subject to SF rent control	Generally not
Tax Benefits	Same deductions as any homeowner	Same

Financing Basics

Loan type: Fractional TIC loan — each owner has their own independent mortgage
Lenders: Must use a specialized TIC lender (I can connect you)
Rates: 0.25–0.75% above conventional; 30-yr fixed + ARM available
Down payment: Similar to or slightly higher than conventional condo financing
Blanket loan: Older TICs may share one mortgage — riskier; ask about this early

The TICA — Your Co-Ownership Rulebook

The TIC Agreement governs how the building runs. A strong TICA covers:

Space: Unit boundaries, parking, storage, shared areas
Finances: Monthly dues, reserves, payment formulas, default procedures
Governance: Decision-making (majority vs. unanimous), meetings, disputes
Rules: Pets, noise, renovations, rental restrictions, sale approvals
Legal: Insurance, lender protections, condo conversion provisions

A thin or outdated TICA isn't a dealbreaker — but it's a conversation you want early. Always have a TIC attorney review it.

Buyer Checklist

Individual or blanket financing?
TICA reviewed by a TIC-experienced attorney?
All owners current on dues and taxes?
Reserve fund in place?
Rental provisions checked? (SF rent control applies)
Condo conversion eligibility researched?
Unit boundaries, parking, storage clearly defined?
Co-owner financials evaluated?
Building maintenance history reviewed?

Why TICs Work in SF

SF's Victorian and Edwardian building stock is built for shared ownership. Local lenders, attorneys, and agents have decades of TIC-specific experience. For many buyers, a TIC is the way into a neighborhood they love at a price that makes sense.