What Is a TIC in San Francisco’s Mission District?

Heard the term “TIC” while scrolling listings in the Mission and wondered if it’s a deal or a headache? You’re not alone. In 94110, Tenancy in Common pops up often, especially in classic Victorian and Edwardian buildings. If you’re comparing TICs to condos, you need clear answers on cost, financing, resale, and day-to-day ownership. This guide breaks it down so you can decide if a TIC fits your goals in the Mission. Let’s dive in.

TIC basics in the Mission

What a TIC is

A Tenancy in Common is shared ownership of a single property where each buyer holds a deeded percentage interest. You may have exclusive use of one unit, but legal ownership is a fractional share of the whole building. TICs are not condos. There is no separate legal unit created by a condo map and there is no statutory HOA.

In practice, your occupancy rights and responsibilities come from a private TIC agreement. That contract sets your percentage, use of a specific flat, rules for maintenance, how common costs are split, and how sales or transfers work.

How occupancy works

Most TICs use an occupancy or use agreement that designates who lives in which unit. You get exclusive possession of your unit by contract, while major building elements and shared systems remain jointly owned. The TIC agreement also outlines how utilities, insurance, reserves, and repairs are handled.

TIC vs. condo vs. co-op

• Condo: You own a separate real estate unit with its own title, mapped by a condo plan, plus a membership in a statutory HOA. Financing is more standardized.
• TIC: You own a fractional interest in the entire property with contractual exclusive occupancy of your unit. Governance is by private agreement rather than state condo law.
• Co-op: You own shares in a corporation that holds title and you get a proprietary lease. TICs differ because you hold a deeded ownership interest.

Financing a TIC in 94110

Fractional loans

The most common approach in San Francisco is a fractionalized loan. Each owner has a separate mortgage secured only by their fractional interest. Lenders underwrite you as the borrower and also evaluate the building’s TIC documents. Terms can vary, and some lenders look closely for cross-default provisions or other clauses that affect risk.

Master loans

Some buildings use one shared master mortgage with all owners on the same loan. Everyone is jointly liable. This can complicate resale and refinancing, because a new buyer may need to join that shared loan or the group must refinance together.

What lenders look for

• Experience with TIC lending. Not all lenders make these loans.
• Higher down payments. Many programs require mid-teens to 20–30 percent down, depending on credit, property, and number of owners.
• Pricing and terms. Rates and guidelines can be less favorable than standard condo loans.
• Documents. Lenders review the TIC agreement, occupancy schedules, building financials, and insurance.
• Refinance and assumability. Some older TIC loans are not easily assumable and not all lenders refinance TICs.

Government-backed programs like FHA, VA, and USDA have historically been restrictive with TICs. Confirm current eligibility with a TIC-experienced lender.

Insurance and title items

Title companies can insure fractional interests, but endorsements are more specialized. You will want to verify master insurance for the building and coverage specifics for common areas. Lenders typically require TIC-specific title endorsements.

The TIC agreement you must read

Key sections to review

The TIC agreement is the core of your ownership. Focus on:

• Ownership percentages and monthly cost sharing for taxes, insurance, reserves, and maintenance.
• Use rules: exclusive occupancy, pet and rental policies, and any short-term rental restrictions.
• Capital projects: how repairs, improvements, and assessments are approved and allocated.
• Default and remedies: cross-default provisions and lender notification requirements.
• Sale procedures: right of first refusal, buyer approval process, and transfer conditions.
• Voting and disputes: how decisions are made and how conflicts are resolved.

Because TICs rely on private contract, have a real estate attorney with TIC experience review the agreement, title report, and any recorded documents before you commit.

Documents to request

Ask for the full TIC agreement and addenda, recorded deeds for each owner, any master mortgage documents, building insurance policies, the current budget and reserve balance, recent special assessments, meeting minutes, and any tenant leases. Also request a preliminary title report showing liens, easements, or restrictions.

Mission-specific context

Common buildings and renovations

In the Mission, many TICs are found in two-to-four unit Victorian and Edwardian buildings and older walk-up apartment flats. Renovation can be part of the story. Larger updates or structural work may trigger planning and building requirements, including permits, seismic items, or accessibility standards. Co-owner approvals for these projects typically follow the TIC agreement’s voting rules.

Why TICs are common here

San Francisco’s rules around condo conversions historically made it difficult or costly to create condos in many small buildings. TICs became a practical way to allow separate ownership of individual flats in older properties. That history is why you still see a mix of TICs and condos across 94110.

Condo conversion reality

Converting a TIC to a condo requires meeting San Francisco’s conversion process and tenant protection rules. It is not automatic. Plan on a city process that involves Planning and, in many cases, the Department of Building Inspection.

Pricing and resale factors

Well-priced TICs in the Mission attract strong interest, especially when documentation is lender-friendly and the building shows good stewardship. Resale can take longer than comparable condos because the buyer pool is smaller and financing is specialized. Buildings without a master mortgage, with clear, modern TIC agreements and adequate reserves, are generally easier to finance and sell.

Risks, benefits, and fit

Potential benefits

• Lower entry price compared with similar condos in some cases.
• Access to character properties and prime locations that might otherwise be out of reach.
• Small-group governance that gives you a direct voice in building decisions.

Common risks

• Financing: fewer lenders, higher down payments, and tougher refinance options.
• Co-owner exposure: master loans or cross-default clauses can create shared risk.
• Governance: disagreements over repairs, upgrades, or special assessments.
• Title and liens: issues recorded against the property can complicate transfers.
• Regulatory costs: required code work or permits can add expense and time.

When a TIC makes sense

• You value the Mission’s location and architecture and want a potential price advantage versus condos.
• The TIC documents are clear, lender-friendly, and fairly allocate costs and rights.
• You can meet the down payment and underwriting standards of TIC lenders.
• You plan to occupy long enough to justify a less liquid ownership format.

When it may not

• You need FHA/VA-style financing or want broad lender choices.
• You want the standardized protections and governance of a condo HOA.
• You need maximum liquidity and a simpler resale path.

Buyer checklist for showings and escrow

Use this as a quick reference when you tour and when you enter contract:

• Documents to obtain:

  • Fully executed TIC agreement and any addenda
  • Recorded deeds for each fractional interest
  • Any master mortgage note and payoff statements
  • Master insurance policy and endorsements
  • Budget, 12 months of financials, and reserve fund balance
  • Minutes from owner meetings and records of special assessments
  • Occupancy/use agreements and any tenant leases
  • Preliminary title report and any recorded liens or easements

• Questions to ask sellers, agents, and lenders:

  • Is there a master mortgage? If so, who is on it and how are payments allocated?
  • What is the current reserve balance and what capital work was done recently?
  • Any pending insurance claims, code violations, or major repairs planned?
  • Are there transfer restrictions or rights of first refusal? How does buyer approval work?
  • Which lenders have successfully financed recent sales in this building?
  • Have any TIC interests resold recently? What were timelines and outcomes?

• Third-party reviews:

  • Attorney review of all TIC and title documents
  • Title company confirmation and required endorsements
  • Pre-qualification with a TIC-experienced lender
  • Physical inspection focused on structure, systems, and permit history

Next steps

If you’re weighing TIC versus condo in the Mission, focus on the documents, the financing path, and the building’s stewardship. With the right agreement and a lender who knows TICs, this ownership structure can open doors to a great 94110 location at a price point that works for you.

Have questions about a specific building or TIC agreement? Let’s talk through your options and map a clear path to ownership in the Mission. Connect with KJ Kohlmyer for neighborhood-first guidance and a practical strategy tailored to your goals.

FAQs

What is a TIC in San Francisco real estate?

• A TIC is fractional ownership of a single property where you hold a deeded percentage interest and get exclusive occupancy of a unit by contract, not by a separate condo title.

How is a TIC different from a condo for buyers?

• Condos create separate legal units with an HOA, while TICs rely on a private agreement to allocate rights and costs. Financing and resale are typically simpler for condos.

Can I get a standard mortgage on a TIC in 94110?

• Many TICs use fractional loans from specialized lenders and may require higher down payments and stricter terms than standard condo mortgages.

Are TICs eligible for FHA or VA loans?

• Government-backed programs have historically been restrictive with TICs. Confirm current guidelines with a lender familiar with TIC financing.

What should I review before making an offer on a TIC?

• Request the TIC agreement, building financials, insurance, title report, any master mortgage, and recent meeting minutes, then have a TIC-savvy attorney review.

Do TICs convert to condos eventually?

• Some do, but conversion is not guaranteed and must follow San Francisco’s condo conversion process and tenant protection rules.

Are TICs harder to resell in the Mission?

• Generally yes, because the buyer pool is smaller and financing is specialized. Clear documents and healthy reserves can improve marketability.