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Tenancy In Common (TICs) With Exclusive Occupancy

Tenants in Common (TIC) ownership is often paired with a tenants in common agreement (TIC Agreement) under which each owner receives the exclusive right to occupy a particular space within the co-owned property. The assigned spaces may be apartments within an apartment complex or building, houses on a single lot, rooms within a single house, offices within an office suite or office building, storage areas within a warehouse, or any other part of a residential or commercial property. We have even created space-assignment tenancies in common for a horse stable, a marina, and a yurt commune. Assigning occupancy rights in a tenancy in common agreement allows a Realtor, seller, project sponsor, or co-owner group to create an arrangement that feels and acts like a subdivision even though actual legal subdivision is impossible, unaffordable, or too time-consuming. To learn more about TIC legal services offered by Sirkin & Associates, visit Our Services.

TICs with assigned occupancy rights should not be confused with TICs that do not involve occupancy rights (including TICs formed for 1031 tax deferred exchanges) because the important issues and questions are very different. For information on TICs without occupancy rights, visit our real estate investment page. The articles, links and resources on this page relate specifically to tenancy in common arrangements involving exclusive occupancy rights.

An Introduction To Tenancy In Common
Clear Answers and Explanations on Tenancy In Common (TIC)
Understand the risks and benefits of tenant in common ownership, an affordable alternative to condominiums. Learn the best practices and law for TICs.
A Tenants In Common Primer
Learn the uses of tenancy in common ownership, the difference between TICs and condominiums, how TIC financing works, and why TICs don’t require city approval.
The New Generation of TIC Agreements
Why some TIC agreements are better at avoiding TIC problems. Learn the current best contract practices, and how to identify a good tenancy in common agreement.
Key Differences Between TICs and Condos
Learn the three most important practical things that make tenant in common ownership less desirable than condominium ownership, and understand why TICs cost less than condos.
Are TICs Good Home-Buying Investments?
Experts discuss how TICs perform in the real estate market. Is buying a TIC risky? Do TICs hold their value? How does TIC appreciation compare to condominiums?
Individual TIC Financing
Each tenancy in common owner can have a separate mortgage. Learn how fractional financing works, and why one co-owner's default does not affect other owners.
How To Divide Property Tax in a TIC
The only fair way to apportion property tax in a California tenancy in common so that one owner’s sale or improvements do not raise the other owner’s taxes.
TIC Essentials for Buyer and Their Realtors
Checklist for TIC Buyers and Realtors
Key questions to ask before buying a tenancy in common. Is the TIC too risky? Can you sell your share? Will your tenants in common be good partners?
How To Get a TIC Mortgage and Refinance a TIC
Learn what TIC mortgages are available, how TIC interest rates compare, which TIC loans are best, and how to get TIC financing.
TIC Guidance for Sellers and Their Realtors
Financing for TIC Converters, Developers and Sellers
Learn about tenancy in common construction/acquisition loans with partial releasing, and assess the individual TIC takeout financing options.
Seller/Developer Liability in TIC Conversions and Sales
TIC developers do not face the same liability risks as condominium developers, and are sued no more often than sellers of existing rental apartments.
Converting An Apartment Building to TIC Without Evictions
Sell TIC shares gradually as tenants vacate without increasing property tax or risk, and defer capital gains tax.
TIC/Ellis Act Profit Study
This 2014 study by San Francisco's legislative analyst examines the profits made when developers evict tenants under the Ellis Act and sell the building as a TIC. Note that the results do not take into account amounts expended by owners to repair or renovate, or the number of years taken to achieve a profit. (1131 KBytes, PDF)
Legal Restrictions on TIC Conversions and Sales
Which buildings can convert to TIC without government approval? How long does application and approval for TIC sale take and how much does it cost?
TIC Public Report Re-Sale Exemption
Seven conditions that must be satisfied to sell a tenancy in common interest without government approval. (51 KBytes, PDF)
Comparing Large and Small TICs
Small TICs are not better or less risky than big ones. The pros and cons of large and small TIC groups for risk, operating, resale and condo conversion.
Converting to TIC and Selling to Existing Tenants
Tenants often buy their apartments when their building converts to TIC. Example of how TICs are sold to current tenants and how tenants organize a buying group.
Operating and Managing A TIC
Starting and Operating A TIC Homeowners Association
Step-by-step instructions for opening bank accounts, tax filings, getting insurance, calling meetings, voting and more, for incorporated and unicorporated TICs.
Enforcing TIC Agreements and Resolving Disputes
Do TICs argue more than condo HOAs? Are TIC agreements enforceable? What’s the fastest and least expensive way to resolve a dispute between tenants in common?
TIC Law, Regulation, and Government Approval
Update on Anti-TIC and Ellis Act Laws
A summary of new 2014 law and pending proposals restricting TIC formation and Ellis Act evictions.
New California TIC Regulations
The California Bureau of Real Estate (BRE) has recently adopted new regulations for formation and sales of tenancy in common (TIC) arrangements involving assignment of exclusive occupancy rights. (54 KBytes, PDF)
California BRE Position on TIC Approvals
California Bureau of Real Estate article on when TIC conversion and sale requires government approval. (257 KBytes, PDF)
Avoiding Property Tax Rassessment
How to prevent property tax increases when changing title or ownership. Parent-to-child, husband-wife, domestic partner, gifts, LLC, partnerships, and more. (10234 KBytes, PDF)
Court Stops TIC Regulation
California appellate court clarifes that TIC conversions are not subject to local subdivision or condominium conversion restrictions. See pages 10-14. (178 KBytes, PDF)
Court Invalidates Anti-TIC Law
California appellate court again strikes down local law prohibiting TICs. This decision was finally ordered published, making it official.
California Subdivided Lands Act
CALIFORNIA CODES BUSINESS AND PROFESSIONS CODE SECTION 11000-11023, the California consumer protection law that regulates the sale of subdivisions and undivided interests such as tenants in common (TICs) (474 KBytes, HTM)
California Subdivision Map Act
CALIFORNIA GOVERNMENT CODE SECTION 66410-66499, the California law that specifies how cities and counties can restrict lot splits, condominium conversions and other subdivisions (1785 KBytes, HTM)
San Francisco Rent Control and Tenants Rights
Owner Occupancy and Ellis Act Evictions
Must a renter leave at lease end? Can an owner evict a tenant to move in? What is the Ellis Act and how does it work? Can a renter waive rent control rights?
San Francisco Rent Control Ordinance
The complete text of San Francisco's rent and eviction control law. Understand which buildings are under rent control, when and how much rent can be increased, and how tenants can be evicted. (532 KBytes, PDF)
San Francisco Rent Board Regulations
More details of San Francisco rent control including whether and when roommates are covered by rent and eviction controls, and how rent can be increased based on an owner's increased costs. (512 KBytes, PDF)
Update on Proposed Ellis Act Reforms
A summary of four 2014 proposed laws at the state and local level that would prevent or restrict Ellis Act evictions.
More TIC Resources and Publications
TIC Sales Trends
2013 TIC sales were up dramatically for the third strait year, and look poised to continue their upward trajectory. Realtor Jesse Fowler discusses sale statistics and other 2013 TIC trends.
TIC Purchase Contract Addendum/Disclosure (group loans)
An attachment for purchase contracts which provides the contract contingencies, terms, and disclosures which need to be added to standard form purchase contracts for individual TIC interests sold with group financing (92 KBytes, PDF)
TIC Purchase Contract Addendum/Disclosure (individual loans)
Purchase contract addendum for sales of TIC interests with individual loans (72 KBytes, PDF)
Our Housing Crisis: A Developer's Perspective
A cogent argument that allowing more density is the only was to increase housing affordability (260 KBytes, PDF)
Promoting Home Ownership Through Condominium Conversion
A complete and well-considered discussion of two competing proposals for liberalization of San Francisco's condominium conversion restrictions, released in 2004 (649 KBytes, PDF)
TIC Financing Resources
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