Tenancies In Common (TIC) are very popular throughout San Francisco and are always a hot topic at city hall, in real estate law offices, with the SF Board of Realtors, and with buyers and sellers of TIC’s or multi-unit buildings.
Over the last couple years, we’ve seen outrage from tenant rights groups, change in the way banks finance such property, change in law in regards to converting TIC’s into condominiums and the price of TIC’s skyrocket. I get questions each week from clients and interested folks trying to gather more information about how to purchase such a property and whether or not it makes sense.
First, a couple definitions:
In SF, a TIC is: a 2+ unit property that is owned by the entire TIC group in percentage shares and a detailed written agreement describes each TIC member’s rights and duties, including exclusive rights to use and occupy particular dwelling units along with assigned storage, parking and decks. (This is from the attorneys, Goldstein, Gellman, Melbostad, Gibson and Harris) .
A condominium is: an individually owned unit including the space within the walls, floors and ceilings of a dwelling, plus shard ownership of the remainder of the property, known as “common areas.” Owners pay monthly dues to their HOA to cover common repair and insurance expenses, but pay separately their individual mortgages, property taxes and utilities. (Goldstein, Gellman, Melbostad, Bibson and Harris)
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