San Francisco Real Estate FAQ: What is a Tenancy in Common or TIC?

If you're shopping for a home in San Francisco, you've likely encountered the term "Tenancy in Common" or "TIC".

With the prevalence of TICs in San Francisco and their unique property ownership structure, it’s important for homebuyers to understand what they’re all about.

Here are the basics, whether you’re already working with top San Francisco real estate agents or just starting to explore your housing options.

What is a TIC in San Francisco Real Estate?

A Tenancy in Common (TIC) is a form of property ownership where multiple parties hold undivided interests in the same property. In San Francisco real estate, the term "TIC" also refers to a specific type of multi-unit building that has not yet been subdivided into individual condominiums. This means buyers purchase a share of the entire building along with exclusive rights to occupy a specific unit.

TICs represent a significant portion of San Francisco's housing stock, offering an alternative path to homeownership. For San Francisco homebuyers, TICs can provide access to desirable neighborhoods at potentially lower price points than comparable condos.

How Does a TIC in San Francisco Work?

A TIC means you and your co-owners hold percentages of the whole building, paired with exclusive rights to live in one unit. A written TIC agreement covers budgets, repairs, and decision-making so everyone stays on the same page. For the full details, see our Ultimate TIC Guide.

Tenancy in Common (TIC) in San Francisco: The Ultimate FAQ Guide 

What’s the Difference Between TICs and Condos in San Francisco?

• Financing: TIC loans are niche and usually need beefier down payments; condos qualify for mainstream mortgages.
• Price tag: TICs often list 10–20% below comparable condos
• Future upside: Some TICs later convert to condos, boosting resale potential.

Considering condo life instead? We’ve got a guide for that too.

The Ultimate Guide to Condos in San Francisco

Where Do TICs Pop Up Most in the City?

You’ll spot TICs in classic “3-unit + garage” buildings sprinkled across Noe Valley, the Mission, Pacific Heights, and many more SF real estate districts. If you’re looking to get to know these areas better, browse our San Francisco Neighborhoods page.

What Should a Buyer Know Before Making an Offer?

Ask yourself:

• Are you comfortable sharing big-ticket decisions (roof, seismic, insurance)?
• Are you OK with a specialized fractional loan?
• Does the price break outweigh the coordination with co-owners?

As top SF Realtors since 2002, we’ve helped many clients to buy and sell TICs, and we’re happy to connect you with a local lender or attorney when you need a recommendation who understands the unique aspects of these properties.

Can You Finance a TIC Purchase in San Francisco?

TIC financing requires specialized knowledge and lender relationships. Unlike traditional home purchases, TIC buyers often need:

• Fractional loans that correspond to ownership percentages
• Lenders experienced with San Francisco TIC transactions
• Higher down payments compared to conventional mortgages
• Coordination with other buyers if purchasing simultaneously

What Are the Benefits to Owning a TIC?

San Francisco TIC properties offer several advantages for homebuyers:

• Lower purchase prices compared to similar condos
• Access to desirable neighborhoods that might otherwise be unaffordable
• Potential for conversion to condos in the future
• Community living with shared building responsibilities
• Investment opportunity in San Francisco's strong real estate market

San Francisco real estate of all kinds can be extremely rewarding. Check out our Real Estate Case Studies for real-life client success stories.

Work with Top San Francisco TIC Real Estate Agents

Navigating tenancy in common properties requires specific expertise in this market segment. We regularly help clients evaluate TIC opportunities alongside their other options.

If you have a question or you’re wondering how TIC ownership might fit your housing goals, contact us today. And while you’re here, why not subscribe to our SF real estate newsletter? Top SF Realtor perspectives and local updates straight to your inbox, no spam or games. Talk soon!

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Work With the Best SF Realtors

Looking for a trusted team to help you buy and/or sell a home in San Francisco? Reach out to us today. We'd love to help.