Tenants in Common

This ownership method often used by investment property owners is now gaining momentum with groups of individuals seeking a more affordable housing alternative. While the legal term “Tenancy in Common” simply refers to a form of group ownership, the residential TIC that has been popular in San Francisco can best be understood through comparison with condominiums.

In a condominium, the portions of the property within the dwelling unit walls are owned by individuals (unit owners), and everything else is owned by a group (a homeowners’ association). In a TIC, the “entire property” is owned by the TIC group (the tenants in common) in percentage shares, and a detailed written agreement describes each TIC members’ rights and duties, including exclusive rights to use and occupy particular dwelling units, along with assigned parking, storage and deck areas.

Although many real estate firms have begun to market multi-unit buildings as tenants in common prospects, it is not as easy as just putting your property on the market and selling to TIC buyers. Often experienced counsel is needed to address the more complex legal and financing issues. Bridge Capital  processes this transaction experience to keep the financial side of the deal together and ensure a successful close.

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