TIC vs Condo vs Co-Op in San Francisco

Trying to choose between a TIC, a condo, or a co-op in the Richmond District? You are not alone. The ownership structure you select will shape your financing, monthly costs, and resale path. In this guide, you will learn what you actually own in each type, how lenders view them, the real costs to plan for, and the due diligence steps that protect you in Richmond. Let’s dive in.

What you own and how it’s governed

Condo basics

You own your individual unit in fee simple plus a share of the common areas. The homeowners association manages shared elements and rules. Your rights and obligations appear in CC&Rs, bylaws, budgets, and reserve studies. For conversion and policy background in San Francisco, review the city’s guidance on condominium conversion.

TIC basics

In a Tenancy-in-Common, you own an undivided fractional interest in the entire property and occupy a specific unit by agreement. Your rights come from the recorded TIC agreement and house rules. Some TICs have a single master mortgage that all owners share, which creates cross-default risk if one owner fails to pay.

Co-op basics

A cooperative is owned by a corporation. You purchase shares in that corporation and receive a proprietary lease to your unit. Transfers often require board approval, and policies on subletting and improvements are set by the co-op’s governing documents. Co-ops are less common in San Francisco than condos and TICs but do exist in select buildings.

Financing: what lenders look for

Condos and warrantability

Condo financing is typically the most straightforward when the project is “warrantable” under agency rules. Lenders review project reserves, owner-occupancy, commercial space, and any litigation. For deeper criteria, see Fannie Mae’s guidance on condominium project review and the Freddie Mac Seller/Servicer Guide. FHA buyers should confirm whether a building is on the approved list through HUD’s condo resources.

TIC loans and shared liability

TICs are the most complex to finance. Many national lenders do not offer conventional TIC loans. Two common setups exist:

• A master loan for the entire property that all owners share. A new buyer may need co-owner and lender consent to join, and one owner’s default can affect all.
• Less common individual financing on fractional interests through portfolio lenders. Pre-qualify with a lender experienced in TICs before making an offer.

Co-op share loans and board approval

Co-ops use share loans rather than standard mortgages, often from portfolio lenders. Expect board approval, review of the co-op’s financials, and potentially higher down payment and reserves.

Monthly costs and assessment risks

What drives your monthly number

• Principal and interest on your loan.
• HOA, TIC, or co-op maintenance fees for building operations, insurance, and reserves.
• Property taxes. In California, the base is roughly 1 percent of assessed value per year, plus local assessments. For specifics, consult the San Francisco Office of the Assessor-Recorder’s tax information.
• Insurance coverage for your interior contents and liability. Building-level master policies vary by ownership type.
• Special assessments for capital work like roof, plumbing, or seismic upgrades.

Richmond seismic retrofit considerations

Many Richmond District buildings are pre-war multi-unit wood frames. San Francisco’s Mandatory Soft-Story Retrofit Program requires certain buildings to complete structural work. Retrofit costs may be assessed to owners. Check a property’s status through the Department of Building Inspection’s Soft-Story Program and permit records before you commit.

Illustrative monthly comparison

These examples are for illustration only. They do not reflect current market pricing. Plug in your own numbers to estimate your monthly cost.

• Hypothetical condo at $1,000,000

  • Property tax: about $833 per month on a 1 percent base rate.
  • HOA dues: example range $400 to $1,200+ depending on services and reserves.
  • Financing: typically conventional if the project is warrantable.

• Hypothetical TIC share at $800,000

  • Property tax: about $667 per month on a 1 percent base rate.
  • TIC dues or shared expenses: example range $800 to $2,000+ depending on building age and services.
  • Financing: likely portfolio lender or participation in a master mortgage.

• Hypothetical co-op share at $700,000

  • Property tax: about $583 per month on a 1 percent base rate if applicable under local structures.
  • Maintenance charges: often include building operations and may include a portion of any underlying building debt.
  • Financing: share loans and board approval required.

Special assessments matter across all ownership types. In a condo, assessments are allocated per your HOA documents. In a TIC, shared liability or master loans can amplify risk. In a co-op, assessments can be levied under the bylaws and may combine with corporate debt service.

Resale and timing in the Richmond District

Marketability by ownership type

• Condos usually have the widest buyer pool. Non-warrantable status or project litigation can reduce demand.
• TICs often carry more resale friction because fewer lenders participate and transfer provisions can slow deals.
• Co-ops require board approval and share-loan underwriting, which narrows the buyer pool and extends timelines.

Typical timelines

• Condos commonly close in 30 to 45 days if HOA documents are delivered promptly and the loan is ready.
• TICs may take 45 to 75+ days due to lender availability, title review, and co-owner or lender approvals.
• Co-ops often add 2 to 6 weeks for board packet review and interviews.

Local building context

The Richmond District includes many two- and three-unit buildings that have become condos or TICs over time. Older structures can carry retrofit obligations or deferred maintenance. Before offering, confirm DBI status, open permits, and any planned assessments to protect your timeline and budget.

Due diligence checklist for Richmond buyers

Core documents for all ownership types

• Preliminary title report and current property tax bill with APN.
• Building permit history, open permits, and DBI soft-story compliance.
• Master insurance certificate with coverage limits.
• Meeting minutes for the past 12 to 24 months and the most recent budget and reserve study.

Condo documents

• CC&Rs, bylaws, and house rules.
• HOA budget, reserve study, and any special assessment notices.
• Resale package and estoppel letter.
• Owner-occupancy percentage and delinquency rates.

TIC documents

• Recorded TIC agreement and exclusive-use map or allocation schedule.
• Master mortgage documents, payoff statements, and lender contact if a shared loan exists.
• TIC budget, reserves, contribution schedule, and any arrears.
• House rules, parking and storage allocations, and utility allocation method.
• Transfer and approval provisions, including any right of first refusal.

Co-op documents

• Proprietary lease, share certificate details, and house rules.
• Articles, bylaws, and board policies, including sublet rules.
• Corporate financial statements, budget, and reserve study.
• Any underlying building mortgage details.
• Board transfer package and interview requirements.

Practical questions to ask early

• How are emergency repairs, seismic upgrades, and capital projects funded and allocated?
• If a TIC has a master mortgage, what is the process for adding a new buyer to the note or substituting owners?
• Are there active or pending claims or litigation at the building level?
• Are any units tenant-occupied, and what is the tenancy status? The San Francisco Rent Board outlines tenant protections and rules.
• Is the building current on DBI-required programs and inspections? Confirm with the Soft-Story Program.

Who to involve

• A San Francisco broker with TIC and co-op transaction experience in the Richmond.
• A real estate attorney or title counsel to review TIC agreements, master mortgages, and co-op documents.
• A lender experienced with your ownership type.
• A building inspector or contractor to estimate retrofit and capital needs.

Your step-by-step plan

1. Get pre-qualified with a lender that lends on your ownership type. For condos, verify agency or FHA status early through Fannie Mae, Freddie Mac, or HUD condo resources.
2. Request the full ownership package from the listing agent before writing. Include TIC agreements and master loan terms, or HOA documents and budgets.
3. Retain local counsel to review documents and explain transfer mechanics, restrictions, and risks.
4. Order a building inspection. If the property is pre-war, get a contractor’s estimate for likely seismic or systems upgrades.
5. Search DBI for soft-story status and open permits by address using the Soft-Story Program.
6. For TICs, confirm whether the master mortgage must be paid off at closing, whether you must assume shared liability, and what lender approvals are required.
7. For co-ops, request the board transfer package, timeline, and interview requirements in advance.

When each option can make sense

• Choose a condo if you want the widest lender pool, simpler title, and generally smoother resale.
• Consider a TIC if pricing reflects the added complexity and you are comfortable with shared structures and potential master-loan dynamics.
• Look at a co-op if you value a more controlled building environment and you are prepared for board approvals and share-loan underwriting.

If you want a second set of eyes on the documents or a tailored financing and cost model for a Richmond property, reach out. You will get principal-level guidance and a clear path forward. Connect with Ana T.L. Dierkhising to talk through your next step.

FAQs

What is the key difference among TIC, condo, and co-op?

• Condos convey a deed to a unit, TICs convey a fractional deed to the whole property with exclusive-use rights, and co-ops convey shares plus a proprietary lease.

How do lenders treat Richmond condos versus TICs?

• Condos are usually easier if the project is warrantable under agency rules. TICs often require portfolio lenders or participation in a master mortgage.

Can I use FHA or VA in the Richmond District?

• FHA and VA have project-level requirements. Many TICs are ineligible. Confirm status early using HUD condo resources and lender guidance.

Why do seismic retrofits matter for Richmond buyers?

• Many older buildings fall under the city’s soft-story program. Retrofits can result in significant assessments. Check DBI’s Soft-Story Program and permits.

What documents should I review before offering on a TIC?

• Ask for the TIC agreement, any master mortgage documents, budgets and reserves, house rules, and transfer or approval clauses. Consider counsel for a detailed review.