All about TICs (Tenancy-in-Common)

What is a TIC?

If you are searching for a home in LA or San Francisco, you have most likely come across properties designated as TICs. Tenancy-in-Commons (AKA TICs) are similar to condominiums in that there is a Homeowner's Association (HOA); in this case, there will be a TIC Agreement, which will outline operating rules (ie: how repairs to shared spaces like the garage are to be handled). The TIC Agreement will also outline the HOA dues, which will include property taxes to ensure tax payments are made on time and in full.

While rare in Pasadena, TICs are growing in Los Angeles and major metropolitan cities like San Francisco, and often offer the opportunity to purchase at a lower $/sqft in comparison to condos and single family homes.

How is a TIC created?

A TIC is typically created when the owners of a multi-unit property establish a legal ownership structure that grants each owner an interest in the entire building while assigning exclusive occupancy rights to a specific residence through a recorded agreement.

For property owners, a TIC structure can create flexibility by allowing residences within a building to be marketed and sold individually rather than as a single asset. For buyers, TICs often provide an opportunity to purchase in desirable neighborhoods at a lower entry point than a comparable condominium. There's a story that TIC ownership began when a group of friends wanted to purchase a home together but secure financing individually. While the reality is more complex, the story speaks to the flexibility that has made TICs such an enduring part of California's housing landscape.

Over time, an entire ecosystem developed around TIC ownership in San Francisco. Local attorneys, lenders, title companies, and real estate professionals created specialized processes and financing solutions like fractional loans that made TIC transactions increasingly accessible and predictable. What was once considered a niche ownership model has become an established segment of the city's housing market.

How is ownership shared?

Owners are bound to a TIC Agreement (TICA) that dictates how owners will share ownership responsibilities (e.g., exclusive rights to space and units, taxes, decision rights). Instead of one deed, there are multiple deeds on each title. Properties are not subdivided, meaning one APN and property tax bill, which is typically split based on portion of purchase price.

Are TICs Good Home-Buying Investments?

While Tenancy in Common (TIC) ownership is less widely known than traditional homeownership options, it has remained a strong and attractive choice even during challenging real estate markets. TICs offer a more affordable way to own property in desirable locations while still enjoying valuable amenities. As buyers seek cost-effective housing solutions, interest in TICs continues to grow, making them an increasingly popular option for both homeowners and investors. Like any real estate purchase, success depends on finding the right property at the right price.

How do TICs compare to Condos? 

Neither structure is inherently better. The right fit depends on your goals, budget, timeline, and comfort with shared ownership. When thoughtfully structured and managed, TICs can provide a compelling alternative to traditional condo ownership, particularly for buyers seeking character, location, and value in competitive markets.

Understanding how TICs work is the first step toward determining whether this ownership model aligns with your next chapter.

Download our TIC Introduction Guide or reach out with your questions. With extensive experience buying and selling TICs in both San Francisco and Los Angeles, Willowmar is here to help you navigate the process with confidence.