TIC is a form of shared ownership. This building has 6 units so you and 5 others will be co-owners. The financing is fractional so it will work like a condo in that sense. Each owner will have to obtain their own financing. This is part of a bankruptcy sale so there will have to be a court confirmation of the sale price.
It is the lower unit.
Paragon Real Estate Group
CA DRE 01844627
I think Oggi's answer is the easiest to understand and even as I'm writing this, I'm voting for his answer as the best but. I'll throw in my two cents ......
A Large building is worth 1,200,000.
The Building has 6 Units with 6 "Owners"
Each unit is worth 200,000(1,200,000 divided by 6= 200,000)
TIC - There is only ONE deed on the building(1,200,000) and each unit owner owns a percentage of that ONE deed but essentially they are sharing space in the building. There is still only one building, one property. Because there is only one deed on the property, if one of them fails to pay their mortgage, the entire building is in jeopardy.
CONDO - There are 6 individual deeds(200,000), Each unit owner has a separate deed and owns their unit separate and apart from the others. There are now 6 separate properties, each worth 200,000. If one unit owner fails to pay their mortgage, it only affects that unit and the other units are not in jeopardy.
I hope that adds to the great answers you have already received.
T.I.C. units the owner of the building, still has an interest in the building. You are buying air space.
Did you get pre- approved for a loan? It is no charge, the first place to start is where you do
your banking. When you are pre- approved for a loan, write me.
Thanks for inquiring
TIC (Tenancy in Common) is really a way to hold title and in this case it would mean you are buying this unit in partnership with the other owners in the building. There is a master document (TIC Agreement) that outlines the rules and specific ownership of each owner in the building.
Buying a TIC might be a good solution for someone looking to buy in San Francisco as it allows you to buy more property for the dollar usually than buying a condo. For more detailed information about TIC's and whether that would be a good option for you Pedro, feel free to give me a call or drop me an email. We can thoroughly go through the benefits and potential pitfalls of buying a TIC.