One of the most common questions buyers ask when shopping in San Francisco is whether they should consider a Tenancy in Common (TIC) or focus only on condominiums.
At first glance, the difference can feel confusing. Both often look similar on paper. Both may be located in the same neighborhoods. Both may offer comparable square footage and finishes. Yet the ownership structure, financing, and long-term considerations are very different.
Understanding the difference between a TIC and a condo is critical to making a confident, informed purchase in San Francisco.
Why TICs Exist in San Francisco
TICs are common in San Francisco because of how housing developed historically. Many buildings were constructed as multi-unit flats long before modern condominium laws existed.
Rather than converting to condos, some buildings remain as Tenancies in Common. This structure allows buyers to own a percentage interest in the entire building while occupying a specific unit.
For buyers, this often means:
- Access to central neighborhoods
- Larger floor plans and classic architecture
- Lower purchase prices compared to condos
But those benefits come with tradeoffs that must be understood clearly.
What a Condo Ownership Structure Means
When you buy a condo, you own your individual unit outright, along with shared ownership of common areas through a homeowners association.
Condos generally offer:
- Easier financing options
- Clear resale paths
- Simpler ownership documentation
- More predictable buyer demand
Because of this, condos are often considered more straightforward, especially for first-time buyers.
However, in San Francisco, condo inventory can be limited in certain neighborhoods, pushing prices higher and reducing options.
How Financing Differs Between TICs and Condos
Financing is one of the most important differences between TICs and condos.
Condos typically qualify for conventional, FHA, and VA financing, assuming the building meets lender requirements.
TIC financing is more nuanced. Many TIC buyers use TIC-specific loans, which are structured differently and require lenders familiar with San Francisco TICs. Some buyers choose to purchase TICs with cash to simplify the process.
Because of this, buyers considering TICs must be comfortable with:
- Fewer lender options
- Slightly higher interest rates in some cases
- More documentation upfront
The right preparation makes these transactions very manageable, but they are not plug-and-play.
Monthly Costs and Building Responsibilities
Both TICs and condos involve shared expenses, but they are handled differently.
In a condo, the homeowners association collects dues and manages maintenance, reserves, and insurance.
In a TIC, owners typically share expenses through an agreement that outlines how costs are divided and decisions are made. This can feel more personal, as owners are more directly involved in the building.
Some buyers appreciate this involvement. Others prefer the structure of a formal HOA. Neither is inherently better, but they appeal to different personalities.
Resale and Long-Term Considerations
Condos generally have a larger buyer pool at resale due to easier financing and broader familiarity.
TICs may take longer to sell, depending on market conditions and buyer education. That said, well-structured TICs in strong neighborhoods continue to attract buyers who value location and space.
Resale success often depends on:
- The clarity of the TIC agreement
- Building condition and reserves
- Buyer education during marketing
Experienced guidance matters significantly here.
Who a TIC Is Often Right For
TICs can be a great fit for buyers who:
- Want to live in central San Francisco neighborhoods
- Value space and architectural character
- Are comfortable with a more involved ownership structure
- Understand financing nuances or plan to buy with cash
For the right buyer, a TIC can offer access to neighborhoods that might otherwise feel out of reach.
Who a Condo Is Often Right For
Condos are often better suited for buyers who:
- Want simpler financing and resale
- Prefer lower involvement in building decisions
- Are first-time buyers seeking predictability
- Value ease over flexibility
Both paths can lead to great outcomes when aligned with the buyer’s goals.
Why Guidance Matters with TIC vs Condo Decisions
The biggest mistake buyers make is assuming one structure is always better than the other.
The right choice depends on:
- Budget
- Risk tolerance
- Lifestyle preferences
- Long-term plans
Understanding these factors early helps buyers avoid regret and move forward confidently.
Final Thoughts
TICs and condos are both legitimate paths to homeownership in San Francisco. Neither is inherently superior. What matters is choosing the structure that fits your goals, comfort level, and long-term plans.
If you are trying to decide between a TIC and a condo, I am always happy to walk through the pros, cons, and real-world implications so you can make the right decision for you.
