Buying a TIC (Tenancy in Common) in San Francisco
A tenancy in common (TIC) in San Francisco is an undivided percentage share of a whole building, paired with a TIC agreement that gives each owner exclusive use of one unit. Most buyers finance a TIC share with a fractional loan, a loan secured only by their own share, from a small group of lenders. A TIC is not a condominium, and converting one into condos is tightly limited by city law.
TICs usually cost less than comparable condos because of those limits: fewer lenders, adjustable-rate loans, shared ownership of the building and a smaller pool of resale buyers. This guide covers what to check before you buy and what to plan for when you sell; our San Francisco real estate guide covers the city’s wider rules.
TIC vs. condo: what you actually own
| Question | TIC share | Condominium |
|---|---|---|
| What is deeded to you | An undivided percentage of the whole parcel and building | Your own unit as a separate legal parcel, plus a share of the common areas |
| Who controls your unit | The TIC agreement among the co-owners | Recorded condo map, CC&Rs and the HOA |
| Typical financing | Fractional loans from a limited set of lenders; some buildings still have one group loan | Conventional, jumbo or government-backed loans, subject to project approval |
| Property tax on purchase | Only the share that changes ownership is reassessed (BOE) | The unit is reassessed |
| Transfer tax | Charged on the price paid for the share (Assessor-Recorder) | Charged on the price paid for the unit |
| Exit options | Sell the share under the agreement’s rules, or convert if the building qualifies | Sell the unit |
State law treats a building as subdivided lands when five or more undivided interests are created for sale, lease or financing, unless an exemption applies (Business and Professions Code §11000.1). That brings larger TIC offerings under the Subdivided Lands Law administered by the Department of Real Estate, so ask how a five-plus-share building complied. If you’re comparing a TIC with a mapped unit, see our guide to San Francisco condos.
Reading the TIC agreement
The TIC agreement is the document that makes a share livable, and lenders read it before they lend. Have a San Francisco real estate attorney review it alongside the purchase contract, and look for clear answers to these questions:
- Exclusive use: which unit, parking space, storage and outdoor areas are yours, shown on an exhibit.
- Shared costs: how property tax, insurance, the building’s utilities and repairs are split, and whether there’s a reserve.
- Decisions: which choices need a majority and which need everyone, such as refinancing a group loan or selling the building.
- Default: what happens if a co-owner stops paying, including cure periods and any forced-sale remedy.
- Selling a share: rights of first refusal, approval of buyers, and how a new owner signs on.
- Partition: California lets co-owners force a partition as of right unless barred by a valid waiver (Code of Civil Procedure §872.710), so most agreements include one; read its terms.
- Conversion: whether owners have agreed to pursue condo conversion and how costs and unit values would be set.
- Disputes: mediation or arbitration before anyone goes to court.
Our guide to partition actions in California explains what happens when co-owners can’t agree and no waiver applies.
TIC financing: fractional loans vs. group loans
With a fractional (individual) loan, each owner signs a note secured by a deed of trust on their own share. If a co-owner defaults, the lender can foreclose only on that owner’s interest, and other owners aren’t responsible for that loan (NCB TIC FAQ). With an older group loan, the whole building secures one mortgage, so every owner depends on every other owner paying.
Fractional loans are portfolio loans, and the terms are narrower than for a condo:
- Few lenders: Bank of Marin, for example, lists TIC loans for owner-occupied units in San Francisco up to $1.5 million (read October 2026).
- Adjustable rates: NCB’s TIC FAQ (revised January 2019) offers 3/1, 5/5 and 7/1 adjustable-rate loans and says fixed-rate financing isn’t available because there’s no secondary market for TIC loans.
- Larger down payments: the same FAQ sets a 20% minimum down payment.
- Lender-approved agreements: lenders review the TIC agreement and may require specific default and transfer terms.
Get pre-approved by a lender that already lends in the building, or confirm early that yours will accept its TIC agreement. Diamond may refer you to partners we work with; you’re free to choose any provider. Our San Francisco buyer guide covers the rest of the offer process.
Condo conversion: the lottery and the Expedited Conversion Program
San Francisco limits conversions under Article 9 of the Subdivision Code. Ordinance 117-13, passed June 18, 2013, replaced the regular lottery with an Expedited Conversion Program (ECP) for buildings that had been in the 2012 or 2013 lottery, barred lottery applications before January 1, 2024, and tied the lottery’s return to the production of replacement affordable units, with a cap of 200 units a year when it resumes.
| Path | Who it’s for | Status and key terms |
|---|---|---|
| Two-unit owner-occupied conversion | Two-unit buildings where both units have been owner-occupied for one year | Treated as new construction and exempt from the lottery (SF Planning Bulletin No. 3) |
| Expedited Conversion Program | Buildings that entered or could have entered the 2012 or 2013 lottery, with owner-occupancy requirements by building size | Fee of $20,000 per unit, adjusted annually and reduced for years in the lottery; lifetime lease offers to non-purchasing tenants (Ordinance 117-13). Public Works announced a temporary resumption from April 22, 2024 after the Pakdel lawsuit was dismissed on April 4, 2024. |
| Condo conversion lottery | Buildings of up to six units meeting owner-occupancy rules | No applications or lottery before January 1, 2024; return depends on replacement-unit production, at up to 200 units a year |
Public Works’ update tells applicants to check its website for further details, so treat any conversion plan as uncertain until Public Works confirms the building’s eligibility in writing. Don’t pay a premium for a TIC share on the assumption that it will convert.
Eviction and buyout history can block conversion
Ordinance 117-13 makes buildings with certain past evictions ineligible for the ECP. Attorney Andy Sirkin’s summary of the rules describes permanent disqualification after a no-fault eviction of a protected tenant on or after May 1, 2005, and says buyouts after October 31, 2014 can delay or disqualify a building. Ask for the building’s Rent Board eviction and buyout history before you buy.
Tenants, rent control and owner move-in
Many TIC buildings are older multi-unit rental buildings, like the flats compared in our central San Francisco home versus flat comparison, so check whether any unit is still occupied by a tenant. State law lets an owner set rents on a unit that is “alienable separate from the title to any other dwelling unit,” such as a condo (Civil Code §1954.52(a)(3)). A TIC share is an undivided interest in the whole building, so a tenant in a TIC unit of an older building may keep local rent control; have a tenant-law attorney confirm.
The same separate-title test appears in the state rent cap exemption for houses and condos (Civil Code §1947.12(d)(5)). San Francisco’s annual allowable increase for rent-controlled units is 1.6% from March 1, 2026 through February 28, 2027 (Rent Board).
If you plan to move into a tenant-occupied unit, the Rent Ordinance’s owner move-in rules and relocation payments apply, and a no-fault eviction can affect the building’s conversion eligibility. See our guides to just-cause eviction rules and cash-for-keys agreements.
Selling a TIC share
Your buyer pool is limited to people who can get a fractional loan or pay cash, so the lender relationships in the building matter as much as the unit. Before listing, collect:
- The recorded deed showing your percentage interest and the current TIC agreement with all amendments.
- Your loan terms, and whether the lender will lend to a buyer in the building.
- The building budget, reserve balance, recent repairs and planned work.
- Any co-owner right of first refusal notices the agreement requires.
- The 3R report, conversion paperwork if any, and the Rent Board history.
The city’s transfer tax applies to the price of the share. Our pages on San Francisco seller requirements and selling in San Francisco cover the city’s required steps and pricing strategy.
This is general information, not legal or tax advice; talk to a California real estate attorney or tax adviser about your situation.
Questions people ask
What is a TIC in San Francisco?
A tenancy in common is co-ownership of a whole building in undivided shares, with a TIC agreement giving each owner exclusive use of a specific unit. Unlike a condo, your unit is not a separate legal parcel.
How do TIC loans work?
Most buyers use a fractional loan secured only by their own share, so a co-owner’s default doesn’t put your loan at risk. Fewer lenders offer them, and NCB’s FAQ says fixed rates aren’t available because there’s no secondary market for TIC loans.
How much down payment do I need for a TIC?
It depends on the lender. NCB’s TIC FAQ sets a 20% minimum, and other lenders set their own limits, so ask before you write an offer.
Can I convert my TIC to a condo?
Possibly, if your building qualifies. Owner-occupied two-unit buildings can convert outside the lottery, the Expedited Conversion Program resumed temporarily in April 2024 for eligible buildings, and we found no official notice that the regular lottery has reopened, so confirm its status with Public Works.
Is the San Francisco condo conversion lottery open?
Ordinance 117-13 barred lottery applications before January 1, 2024 and tied the lottery’s return to the production of replacement affordable housing. Check with Public Works’ Bureau of Street-use and Mapping for its current status.
Is a TIC unit rent-controlled if I rent it out?
It can be. The state exemption that lets condo owners set rents applies to units alienable separately from other units, which a TIC share generally isn’t. Have a tenant-law attorney review the building’s age and history.
Do I pay transfer tax when I buy a TIC share?
Yes, San Francisco’s transfer tax applies to the price of the share, using the same tiered rates as other sales. Your purchase contract says who pays it.
Considering a TIC, or getting ready to sell one? We can help you check the agreement, the lender options and the building’s history before you commit. Talk with Diamond about a San Francisco TIC.
Sources & notes
- SF Board of Supervisors: Ordinance 117-13 (Expedited Conversion Program and lottery suspension)
- San Francisco Public Works: Expedited Conversion Program update (temporary resumption)
- San Francisco Public Works: ECP application guidelines
- SF Planning: Director Bulletin No. 3, condominium conversion
- SF Planning: Community Stabilization, condominium conversion restrictions
- Andy Sirkin Law: Effect of eviction and buyout history on conversion eligibility (2022)
- NCB: Tenancy in common FAQs (rev. January 2019)
- Bank of Marin: Tenants in common (TIC) loans
- California Legislature (via California Public Law): Business and Professions Code §11000.1
- California Legislature (via California Public Law): Code of Civil Procedure §872.710
- California Legislature (via California Public Law): Civil Code §1954.52
- California Legislature (via California Public Law): Civil Code §1947.12
- California State Board of Equalization: Change in ownership FAQs
- SF Assessor-Recorder: Transfer tax (sf.gov)
- SF Rent Board: Annual allowable rent increase, March 2026 to February 2027
Last reviewed October 2026 by Matthew Martinez.
