One of the most popular forms of ownership in residential apartment buildings in San Francisco is "Tenancy-In-Common" or ("TIC"). This form of ownership is widely used in San Francisco when buildings cannot be converted to condominiums or are waiting to become eligible for condominium conversion. Unlike in a condominium project, where the 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 portions of the property such as units, yards, decks, storage or parking spaces are granted by agreement of the parties. Such agreements, commonly referred as to 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 a reputation of presenting more risks. However, well-drafted TIC Agreements significantly diminish the risk of co-ownership and present a great alternative to condominiums. In addition, well-drafted TIC Agreements offer ways to resolve co-owner disputes in a cost- and time-efficient manner. There are several forms of TIC Agreements that can be used to meet the needs of owners in specific situations, and not all TIC Agreements are alike.
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 assessments;
- 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 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 or space spaces, by renting a unit in violation of the TIC Agreement, by making unauthorized improvements etc.)
Our experience in TIC dispute resolution enables to proactively address in our TIC Agreements issues that may arise among owners, and, by doing so, reduces the risk of 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 assist you with resolving any internal disputes.