Tenancy in Common (TIC)

Updated 2 months ago ​by Alex Wolff

What it is:

Tenancy in common describes joint ownership of a building where each owner has a side agreement to only occupy a single unit despite all the owners having joint liability and, sometimes, a shared mortgage. TIC is most common in San Francisco, where it is used to circumvent the tough condo conversion laws.

What that all means:

With a TIC, a group of people will own the entire property, as opposed to individuals owning each unit. The largest issue facing TICs is the ability to finance the property as most traditional lenders do not offer TIC services.

What to know:

- While a handful of lenders in the Bay Area will accommodate TIC loans, most traditional lenders will not.

- TIC is used primarily as a workaround for condo conversion laws. San Francisco limits the number of condo conversions per year.

- Our support agents can provide you with a list of known TIC lenders, or reach out to the seller’s agent of any specific property to see if they have a preferred lender.