In San Francisco, one of the most popular forms of ownership in residential apartment buildings is a "Tenancy-In-Common" (or "TIC"). This form of ownership is commonly used when buildings are either unable to be converted into condominiums or are waiting to become eligible for condominium conversion. Unlike in a condominium project where each owner owns a unit and an undivided ownership interest in the Common Area, in TICs, each owner owns an undivided interest in the entire property. Exclusive rights to use certain areas of the property, such as units, yards, decks, storage or parking spaces, are granted through an agreement of the parties. These agreements, commonly referred to as TIC Agreements, govern the rights and obligations of the owners with respect to the property, including assessments, maintenance, repair, loan payments, property taxes, etc.
While TICs share some of the great characteristics of condominium projects, they have the reputation of presenting more risks. However, well-drafted TIC Agreements significantly diminish the risk of co-ownership and present an excellent alternative to condominiums. In addition, well-drafted TIC Agreements offer ways to resolve disputes among co-owners in an inexpensive and time efficient manner. There are several versions of TIC Agreements that can be used to meet the needs of owners in specific situations. All TIC Agreements are not the same.
Our firm has been drafting TIC Agreements for more than 10 years and has successfully handled numerous TIC disputes, involving:
- Failure to pay regular or special assessment;
- Failure to refinance;
- Failure to convert the building to condominiums;
- Failure to cooperate with the sale of a TIC interest;
- Failure to maintain the property;
- Failure to pay the property tax;
- Failure to comply with provisions of the TIC Agreement (e.g., by committing a nuisance, by allowing unauthorized pets, by using unassigned parking spaces, by renting a unit in violation of the TIC Agreement, by making unauthorized improvements, etc.)
Our experience in TIC dispute resolutions allows us to address issues in our TIC Agreements that may arise among owners, and by doing so, minimize the risk of future disputes.
If you plan to co-own a property with "strangers", friends, or family members, we can prepare the type of TIC Agreement that will fit your specific needs and assist you with the creation and operation of your TIC.
If you are already a TIC owner and have encountered difficulties in dealing with your co-owners or have questions regarding the interpretation of your TIC Agreement or operation of your TIC, we can review and interpret your TIC Agreement and help you resolve any internal disputes.
For pricing information, please contact us via email or call us at (415) 956-8100.