What is a TIC, and is it right for you?
A TIC lets you own a share of a building and live in your own unit, often for less than a comparable condo. Here's how it works, what to watch for, and what to ask before you buy.
Shared ownership, private home
In a Tenancy in Common, two or more people own one property together. Each owner holds an undivided percentage of the whole building, and the shares don't have to be equal.
On paper, you own a slice of everything. In practice, a written TIC agreement gives you the exclusive right to live in a specific unit and spells out how costs, repairs, and decisions are shared.
In Los Angeles, TICs are common in duplexes, triplexes, and small apartment buildings that were never converted into legal condos.
Four owners share one deed. Each share is usually set by the unit's size and value.
- The Unit A owner holds 28% of the building and lives in Unit A.
- Property tax, insurance, and repairs are split by the agreement.
- Shares add up to 100% of one property.
TIC vs. condo vs. joint tenancy
| TIC | Condo | Joint tenancy | |
|---|---|---|---|
| What you own | A % share of the whole building | Your unit outright, plus shared common areas | Equal shares of one property |
| Your own unit | Yes, by TIC agreement | Yes, by legal map and deed | Usually one shared home |
| Shares can differ | Yes | n/a | No, always equal |
| If an owner dies | Share passes to their heirs | Unit passes to their heirs | Share goes to surviving owners |
| Financing | Fractional or group loan, fewer lenders | Standard mortgage | Standard mortgage |
| Rules set by | TIC agreement | HOA and CC&Rs | Owners' own arrangement |
Why buyers choose TICs, and what to watch
Advantages
- Often priced below comparable condos in the same area
- A path into neighborhoods where condos are scarce
- Character buildings, often with smaller ownership groups
- Many agreements allow a future condo conversion
Things to watch
- Fewer lenders, and rates can run higher than a standard mortgage
- Resale can take longer because the buyer pool is smaller
- You depend on co-owners paying their share on time
- Rent control and tenant rules may affect the building
How TIC loans work
Fractional loan: each owner gets their own mortgage on their share. If a neighbor defaults, your loan isn't affected. This is the most common setup in newer TICs, but only a handful of lenders offer it.
Group loan: one mortgage covers the whole building, and every owner pays toward it. It's simpler to get, but a missed payment by one owner puts the whole group at risk.
Ask early which type the building has. It shapes your down payment, your rate, and how easy it will be to sell later.
Questions to ask about any TIC
- Is there a recorded TIC agreement?
Read it in full. It's the rulebook for your ownership. - Fractional loan or group loan?
And which lenders have financed units in this building before? - How are costs and repairs split?
Look for a reserve fund and a clear process for big repairs like roofs. - What happens if an owner stops paying?
Good agreements include default and buy-out provisions. - Are there limits on selling or renting?
Some agreements give co-owners a right of first refusal. - Is condo conversion possible?
Conversion can add value but depends on city rules and owner consent.
Let's look at it together
I'll help you review the TIC agreement, connect with lenders who finance TICs, and compare the price against condos nearby.
Email me about a TICThis guide is general information, not legal, tax, or lending advice. TIC agreements vary widely. Have a real estate attorney review any agreement and talk to a lender about financing before you buy.