If what you really wanted to ask was â€œwhat is a TICâ€, the responses below will help you.
LEOPOLD A RODRIGUEZ
Real Estate Broker 00849905
400 Montgomery 505
San Francisco CA 94104
When a former apartment rental building is vacant and sold to a group of owners they hold title to the entire building as tenants-in-common. Say a four unit building is sold to four individuals.The reason this form of title is used is because the owners do not have the right to inherit the interest of the other owners.
If all four people are going to live in the property they draw up a contract called a TIC Agreement that spells out who has rights to which unit, which parking place etc. and sets up an HOA for maintenance of the common areas.
There have been many political skirmishes around allowing higher numbers of units to convert. There is one before the Board of Supervisors now.
TIC stands for Tenancy in Common, which is a legal form of ownership. Essentially it's a workaround to the tough condo conversion laws here, and there are several distinct differences between a TIC and a condo.
1. With a condo you own 100% of your unit and a share in the common area. With a TIC you own a share in the entire building.
2. With a condo you get your own tax bill. With a TIC you get one tax bill for the building and each owner (called co-tenant or co-owner) pays their share of the bill according to their percentage of ownership.
3. With a condo most lenders can finance. With a TIC only a select group of lenders will finance and the loan products are substantially more expensive, making resale more complicated due to limited financing options.
4. The number of units in the building and eviction history have huge impact on ability to condo convert, rent a unit(s), and resale.
5. With TICs there is generally a lot more interactivity between the co-owners, which can lead to interpersonal frictions that are not as prevalent in condo situations.
6. Because the financing is more expensive a TIC should be less expensive than a similar sized condo in the same neighborhood.
An excellent resource for TIC info is http://www.andysirkin.com. If you'd like more in-depth info or explanations of the above feel free to call. We're also happy to help you evaluate if a TIC is right for you, but make sure whoever represents you knows this subject well. I suggest you interview several agents/brokers and find the one that fits you best.
Lance King/Owner-Managing Broker
A TIC is an ownership interest in a particular unit. It is not a condo and lending options are limited to group or fractional financing.
This site provides insight into this type of ownership.