01
Your recorded ownership
Your deed identifies your percentage interest in the property.
Los Angeles Homeownership Guide
A Practical Guide to TIC Ownership in LA
Clear, plain-language information about how TIC ownership works, financing, monthly expenses, and what buyers can expect.
A long-established form of real estate ownership
What is a TIC?
TIC stands for tenancy in common. It is a form of real estate ownership that has existed for hundreds of years, with roots in English common law, and has been expressly recognized in California since 1872.
How TIC ownership works in practical terms
Each buyer receives a recorded ownership interest in the property. A detailed TIC agreement connects that interest to the exclusive use of a specific home and designated spaces.
The TIC agreement explains how the owners share expenses, maintain common areas, make property decisions, fund reserves, and handle the sale of an individual ownership interest.
Recorded ownership. Exclusive use of your home. Each financed owner has a separate mortgage.
More direct control than a typical condominium
Many residential TICs involve only a small number of owners, sometimes just two or three. Instead of decisions being made by a larger HOA board, co-owners generally participate directly under their TIC agreement. That can make the experience feel closer to owning a single-family home.
- A small ownership group with direct participation in property decisions
- Shared expenses allocated among the owners, much like a condominium
- Long-established and popular in San Francisco for decades
- Comparable in concept to New York City co-op ownership
- Your budget may go farther, opening the door to more space or a more convenient location
How TIC ownership works
The agreement is the road map
The legal structure is organized in writing so each owner understands the home, spaces, expenses, and responsibilities connected to their ownership interest.
02
Exclusive use of your home
The TIC agreement assigns your residence and designated exclusive-use areas.
03
Shared expenses
Just as in a condominium, shared expenses are allocated among the owners.
04
Direct property decisions
In many small TICs, owners make decisions directly under the agreement rather than through a larger HOA board.
05
You can sell your interest
TIC agreements are designed to provide a process for selling an individual interest. Review that process during escrow.
The purchase process
What to expect when buying a TIC
1
Connect with a TIC lender
Experienced lenders can explain fractional financing, down payments, qualification requirements, and available loan options.
2
Review the property and documents
Review inspections, title, the TIC agreement, exclusive-use diagram, operating budget, reserves, insurance, and applicable restrictions.
3
Purchase your ownership interest
Your deed identifies your percentage ownership, while the agreement identifies the home and assigned spaces you may exclusively occupy and use.
4
Operate as a small ownership community
Owners share expenses, maintain common areas, fund reserves, and participate directly in decisions under the TIC agreement.
Your typical monthly costs
Individual mortgage payment
Allocated share of property taxes
TIC dues for insurance and common utilities
Maintenance, management, and reserves
Separately metered utilities and personal insurance
Special assessments when reserves are insufficient for major work
What ownership looks like in practice
- You receive a recorded deed.
- The agreement assigns exclusive use of your home.
- Shared expenses are allocated much like condominium HOA dues.
- The agreement provides a process for selling your individual TIC interest.
- Fractional financing keeps each owner’s mortgage separate.
California TIC financing
Experienced lending resources
For the best experience, speak with lenders who are familiar with California TIC financing. Buyers may work with any lender and should compare programs, rates, fees, and service.
National Cooperative Bank
Jeremy Morgan · Senior Vice President
NMLS #507536
Fractional TIC purchase and refinance financing.Primary Residential Mortgage
Henry T. Jeanes · TIC Financing Specialist
NMLS #657755
More than 18 years specializing in California TIC financing.All California Mortgage
Susan Willis · Senior Mortgage Advisor
NMLS #289526
California TIC mortgage lending expertise.The Belfor Team · American Pacific Mortgage
Michael A. Belfor · Mortgage Banker and Branch Manager
NMLS #264700
TIC financing for Los Angeles and Bay Area buyers.Questions to ask any TIC lender
- How many California TIC loans have you closed?
- What down payment is required?
- Do you finance owner-occupied and investment TICs?
- What is your typical closing timeline?
- Are there lender fees unique to TIC financing?
Frequently asked questions
Simple answers about TIC ownership
The purpose of this guide is to make the structure easy to understand before you consider a particular property.
Will I have my own mortgage?
Yes. Most residential TIC buyers obtain an individual fractional loan tied to their ownership interest. Available programs, down payments, and qualification requirements vary by lender.
Will I receive a deed?
Yes. Your deed records your percentage ownership interest in the property.
How does a TIC compare with a condominium?
Both involve shared expenses and common areas. The practical difference is that many residential TICs have only a few owners, so property decisions are often made directly among the co-owners under the TIC agreement rather than through a larger HOA board. For many buyers, that can feel closer to owning a single-family home.
How is my home assigned to me?
The TIC agreement connects your ownership interest to the exclusive use of a specific residence and designated spaces such as parking, storage, patios, or yards when applicable.
How are common areas maintained?
The TIC agreement and operating budget explain how the owners share responsibility for insurance, utilities, maintenance, management, reserves, and decisions affecting common areas.
Can I sell my TIC interest?
Yes. TIC agreements are generally drafted to allow an owner to sell an individual interest. During escrow, review the agreement to confirm the process for marketing, transferring, and financing that interest.
Is TIC ownership new?
No. TIC ownership has roots in English common law, has been recognized in California since 1872, and has been especially popular for residential ownership in San Francisco for decades.
Why is TIC ownership compared with New York City co-ops?
The legal structures are different, but both are familiar examples of owning and occupying a particular home within a larger shared property.
What should I review before buying?
Buyers should review the TIC agreement, title, disclosures, inspections, exclusive-use diagram, budget, reserves, insurance, financing, meeting records, and applicable rental or use restrictions with qualified professionals.
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