About TIC Talk Real Estate
What is a TIC?
TIC stands for “Tenants In Common” and is a way to hold title when two or more people co-own. You can hold title in multiple ways, such as your personal name, or as an entity like a corporation, or LLC. When two or more people buy a property together each of their names will be listed on title and they can hold title as Tenants in Common or as Joint Tenants.
TIC ownership is an alternative to the condominium market. Few are pioneering the TIC market in Los Angeles, but TIC sales have been hugely popular in San Francisco for quite awhile. The TIC market in San Francisco is similar in popularity to the co-op market in New York City.
Condos Vs. TICs
TIC looks like a condo, acts like a condo, operates like a condo. You sell it, buy it and rent it like a condo (see section below about rentals). There is no approval process to rent or sell your unit, just like a condo. There is no board “lording” over you. There is no board approval. There is a technical difference (outlined below) that is not noticeable.
Selling and Renting:
- TICs: You can sell or rent your unit whenever you want, without needing permission or board approval.
- Condos and TICs: You keep the proceeds from selling and the income from renting.
Management and Maintenance:
- Condos and TICs: You need HOA approval for exterior work. For issues like roof leaks or HOA disagreements, the process is similar.
- TICs: You can renovate the interior without permission.
Neighbor and Market Considerations:
- Condos and TICs: You can’t choose your neighbor and other owners don’t have first right of refusal on sales.
- Condos and TICs: Your property’s value and appreciation are similar, and rental and sale prices are determined by the market.
Restrictions:
- Condos and TICs: Early rental restrictions may apply if the property was removed from the rental market by The Ellis Act.
- Condos and TICs: City and state rent-control laws apply if the property is rent-controlled, which may include restrictions on short-term rentals.
Pros of TICs compared to condos:
- Generally more affordable than condos.
- Offer architecturally unique and distinctive buildings.
- Typically include more land and open space.
- Create smaller, more intimate communities.
- Proven success with many established TIC communities.
- Lower HOA ( called DOC- Declaration of Covenants) Fees
- Help preserve historic or older buildings.
- Provide access to reasonable and competitive loan options.
Current TIC Listings
