Buying or selling property in San Francisco has always required a little extra homework — and in 2025, the Condo vs. TIC debate remains one of the city’s most important decisions. As affordability pressures persist, interest rates fluctuate, and more buyers hunt for creative entry points into prime neighborhoods, the choice between a condominium and a tenancy-in-common (TIC) has become a defining fork in the road for both homebuyers and sellers.

Condos and TICs might look similar from the sidewalk — both often occupy charming Edwardians, boutique multi-units, or sleek new developments. But beneath the surface, they operate under entirely different legal, financial, and ownership frameworks. Understanding those differences can save (or cost) tens of thousands of dollars, determine resale flexibility, and shape your long-term financial stability.

From how each is owned and taxed, to who finances them, to what resale looks like down the road, this guide breaks down everything buyers, sellers, and agents should know about SF’s two most common forms of multi-unit ownership — updated for 2025 market realities.

Whether you’re evaluating a TIC as a more affordable path into a top-tier neighborhood or deciding if a condo’s flexibility is worth the premium, this article will help you make a data-backed, practical choice.

Key Takeaways

• Condos offer independence and flexibility. Each unit is a separate legal parcel with its own tax bill and access to conventional financing — making condos easier to finance, insure, and resell.
  
  
• TICs trade flexibility for affordability. Buyers purchase a fractional interest in a shared parcel under a TIC agreement. The trade-off: lower purchase price (often 10–20% less than condos) but fewer lending options and shared ownership complexity.
  
  
• Financing is the main dividing line. In 2025, conventional lenders remain condo-friendly, while only a handful of portfolio lenders handle fractional TIC loans — often with higher down payments and case-by-case underwriting.
  
  
• Sellers should price strategically. The 2025 SF market shows condos attracting a wider buyer pool and faster resales, while well-located TICs are gaining traction as entry-level options for buyers priced out of condos.
  
  
• Long-term value depends on the property’s legal structure, not just its look. A condo may sell faster and command a higher price, but a TIC in a desirable building or neighborhood can still deliver strong appreciation — especially if maintained and financed wisely.
  
  

Quick Answer

In San Francisco, condos and TICs (tenancies-in-common) both represent forms of shared property ownership — but they differ in legal structure, financing options, and resale flexibility.

Condos are individually owned parcels with separate property tax bills and access to traditional mortgage financing through conventional lenders. They’re the preferred choice for buyers who want maximum flexibility, easier resale, and straightforward ownership.

TICs, on the other hand, are fractional ownership shares of a single property. Owners sign a TIC agreement that outlines usage rights, payments, and responsibilities. TIC buyers rely on portfolio lenders offering fractional loans, which come with stricter underwriting and fewer financing choices.

Because of these limits, TICs typically sell for 10–20% less than comparable condos, providing an affordable entry point into San Francisco’s most desirable neighborhoods.

In short:

• Choose a Condo if you want broad financing options, individual control, and easier resale.
  
  
• Choose a TIC if your goal is a lower purchase price and you’re comfortable navigating shared ownership and specialized financing.
  
  

Understanding Condo vs TIC Ownership in San Francisco

Legal Ownership Differences

A condominium is a separately owned unit within a multi-unit property. Each condo owner holds title to their own unit and shares ownership of common areas through a homeowners association (HOA).

A tenancy-in-common (TIC) means multiple owners share one property parcel and own fractional interests in that parcel. You own a percentage of the entire building, with an exclusive right to occupy a specific unit defined in a TIC agreement.

In summary:

• Condo = individual ownership of a defined unit + joint interest in common areas.
  
  
• TIC = shared ownership of one parcel + exclusive right to occupy your assigned unit.
  
  

How Property Taxes Work

• Condos receive separate tax bills for each unit.
  
  
• TICs share a single property tax bill, divided per the TIC agreement.
  
  

Some TIC agreements include safeguards to ensure all owners contribute on time. Buyers should confirm how taxes are allocated and collected, and sellers should ensure billing clarity before listing.

HOA vs. TIC Agreement Management

Condos operate under an HOA governed by state law. TICs rely on a private TIC Agreement that defines maintenance, reserves, usage, and voting rights.
Because TIC agreements vary, legal review before closing is critical for buyer protection and resale value.

Financing in 2025 — What’s Changed

Conventional Condo Loans

Condos remain fully financeable through national lenders using Fannie Mae and Freddie Mac standards, offering:

• Lower down payments (5–10%)
  
  
• Competitive interest rates
  
  
• Broad refinancing and resale options
  
  

Sellers benefit from a wider buyer pool and faster closings.

Fractional TIC Loans Explained

TICs use fractional loans, not conventional mortgages. Each co-owner has their own note and deed of trust, held by portfolio lenders that keep loans in-house.
As of 2025:

• Down payments: 20–25%
  
  
• Rates: ~0.5–1% higher than condos
  
  
• Lenders: Fewer than 10 active TIC lenders in SF
  
  

These loans provide individual control but require meticulous underwriting and lender familiarity.

Interest Rates, Down Payments & Approval Tips (2025)

Tips:

• Buyers: secure fractional preapproval before offers.
  
  
• Sellers: pre-market with TIC lender recommendations for smoother escrows.
  
  

Price Gaps & Market Trends (2025 Data)

Why TICs Remain 10–20% Less Expensive

Three main reasons sustain the price gap:

1. Financing limits restrict buyer pool size.
   
   
2. Perceived complexity reduces competition.
   
   
3. Liquidity differences affect resale pace.
   
   

2025 MLS data shows:

• Median condo price: ~$1.13M
  
  
• Median TIC price: ~$930K
  
  

The Real Cost of a “Discounted” TIC

Lower price ≠ lower total cost.
TIC owners face:

• Higher rates (0.5–1%)
  
  
• Shared tax liability
  
  
• Legal & setup costs ($2K–$5K)
  
  
• Variable insurance structures
  
  

Still, many TIC buyers enjoy 8–12% lower monthly payments than condo owners because of smaller loans.

Conversion Myths — What’s Realistic Now

Only two-unit, owner-occupied TICs may still qualify for fast-track condo conversion.
Larger buildings rarely qualify under 2025 rules.

Treat TICs as long-term ownership, not conversion investments.
Well-managed TICs can still appreciate at 85–95% of condo rates over time.

Lifestyle, Flexibility & Resale Considerations

Which Option Fits Your Long-Term Plans

• Condos: Independence, easier refinancing, rental flexibility.
  
  
• TICs: Lower entry price, better neighborhoods, cooperative structure.
  
  

Condos fit those who want options; TICs fit those who want access.

Resale Timeline and Buyer Pool Differences

2025 data:

• Condos: 27–35 days on market.
  
  
• TICs: 45–60 days on market.
  
  

TICs sell best when priced with clarity and paired with fractional lender recommendations.

Insurance, Maintenance, and Legal Protections

Condos: Covered under HOA master policies governed by state law.
TICs: Rely on group insurance via private agreement.
Buyers must verify:

• Existence of a master policy
  
  
• Maintenance voting rights
  
  
• Default procedures
  
  

Clear documentation enhances resale confidence and lender approval.

Due Diligence Checklist (Especially for TIC Buyers)

Reviewing the TIC Agreement

Confirm:

• Ownership percentage and occupancy rights
  
  
• Default procedures and dispute resolution
  
  
• Voting and resale processes
  
  
• Rental and pet policies
  
  

Hire a TIC-savvy real estate attorney before signing.

Verifying Fractional Loan Structure

• Ensure individual fractional loans, not group notes
  
  
• Confirm lender experience with SF TICs
  
  
• Review default isolation protections
  
  
• Ask about refinance flexibility
  
  

Sellers should include loan info in disclosures — it’s a trust signal.

Seismic, Reserves, and Usage Rules

Check:

• Seismic/soft-story retrofit compliance
  
  
• Reserve funding and repair planning
  
  
• Parking and storage assignments
  
  
• Shared system condition reports
  
  

Well-maintained TICs with strong documentation sell faster and hold value longer.

Typical Offer Terms in San Francisco (2025 Update)

• Close timelines: 20–30 days (cash 10–15).
  
  
• Earnest money: 1–3% of purchase price.
  
  
• Inspections: 0–3 days or rely on seller reports.
  
  
• Appraisal: Often waived or covered by gap coverage.
  
  
• Loan contingency: 10–14 days typical.
  
  
• Rent-backs:
  
  
  • <29 days → license addendum
    
    
  • ≥30 days → formal lease under SF landlord-tenant law
    
    

Understanding these norms helps buyers craft winning offers and helps sellers set realistic expectations.

Next Steps

• Book a 15-minute consult to compare condo vs TIC by lifestyle and cost.
  
  
• Get dual quotes from a conventional and fractional lender.
  
  
• Review disclosures early, and if it’s a TIC, have an attorney review the agreement before signing.
  
  

Frequently Asked Questions

1. Are TICs good investments in 2025?

   Yes — when bought in desirable neighborhoods with strong TIC agreements and modern fractional loans. TICs appreciate slower but remain stable entry-level options.

2. Can I rent out a TIC?

   Only if the TIC agreement allows it. Many restrict rentals, especially short-term ones. Always confirm in writing before buying.

3. Do TICs have HOAs?

   No. TICs operate under private agreements instead of formal HOAs. Rules, dues, and voting vary by building.

4. Can I refinance a TIC loan later?

   Yes, but only through fractional lenders. Rates depend on market conditions and lender availability at the time.

5. Which sells faster in SF — condos or TICs?

   Condos. Broader financing access and higher demand typically lead to faster closings and stronger resale values.

Call to Action

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Related Reading:

• [Buying in Russian Hill (2025)]
  
  
• [Buying in Cow Hollow (2025)]