Thinking about a Noe Valley flat but not sure if a TIC or a condo is the better fit for you? You are not alone. Both ownership types can deliver a great lifestyle, yet they work very differently once you look under the hood. In this guide, you will get a clear, practical comparison of ownership, financing, monthly costs, resale, and what to check when you tour. Let’s dive in.
TIC vs condo basics
At a high level, a condo and a TIC represent two different legal paths to owning a home in a multi‑unit building.
A condo gives you fee‑simple title to your unit and a shared interest in the building’s common areas. Your ownership is laid out in recorded documents, including a condo map and CC&Rs, and the building is run by an HOA that follows bylaws and budgets.
A TIC gives you a fractional ownership interest in the entire property. Your exclusive right to occupy a particular unit comes from a private TIC agreement, not from a condo map. Governance and rules depend on that agreement, which can vary widely from building to building.
How ownership works
Condo ownership
With a condo, your exclusive space is clearly defined. You also own a percentage of the shared areas, and an HOA manages the budget, reserves, maintenance, and insurance. You can review recorded CC&Rs, bylaws, and HOA disclosures to understand rights, obligations, and costs before you buy.
TIC ownership
With a TIC, you own a percentage share of the whole property, and the TIC agreement allocates which unit you can occupy. The agreement also sets rules for repairs, reserves, dispute resolution, and how bills are split. Parking and storage rights are typically addressed in the TIC agreement, so confirm what is exclusive versus shared.
Financing differences
Condos are widely understood by lenders. Many condos qualify for conventional loans and, in some cases, FHA or VA financing, as long as the project meets a lender’s eligibility standards. Appraisals also tend to be more straightforward, since there are many condo comparables.
TIC financing is more specialized. Not all lenders offer it, and underwriting often requires extra documentation like the TIC agreement and any master mortgage details. Buyers may face a smaller lender pool, potential rate differences, or higher down payment expectations. FHA or VA options for TICs are limited or unavailable unless strict conditions are met, so plan ahead.
Practical steps for financing
- Get pre‑approved with a lender experienced in San Francisco TICs if you are exploring TICs at all.
- Ask early about project eligibility, HOA or TIC requirements, and appraisal expectations.
- Confirm whether the building has a master mortgage, and how that affects your loan and closing.
- Keep copies of the TIC agreement or condo documents ready for underwriting.
Monthly costs and taxes
Condo owners pay HOA dues. These dues often cover a master insurance policy, exterior maintenance, some utilities, trash, landscape, and reserves. Dues vary by building size, amenities, and reserve needs.
TIC owners often pay a monthly “share” that can include the building’s mortgage if a master mortgage exists. It can also include property taxes, insurance, utilities, maintenance, and reserves. Because a TIC payment may include a share of mortgage principal and interest, comparing only headline dues to condo HOA fees can be misleading.
Property taxes
In California, property taxes are generally reassessed with a change of ownership. For condos, each unit is separately parcelized and is reassessed when it sells. For TICs, the sale of a fractional interest typically triggers reassessment of that interest unless an exclusion applies. Review how taxes are allocated in the TIC agreement and budget.
Insurance basics
Condos typically have a master insurance policy for the building. You will usually carry an HO‑6 policy for interior coverage and personal liability. Confirm whether the HOA’s master policy is walls‑in or walls‑out, and how deductibles are handled.
TIC insurance is defined by the TIC agreement and the master policy carried for the property. Verify the scope of the master policy, required owner coverage, liability exposure, and how deductibles and claims are handled. Also check earthquake coverage and any separate costs.
Repairs, reserves, and upgrades
Condo HOAs usually follow established processes for budgeting, reserves, and special assessments. Board actions are governed by recorded bylaws and state disclosure rules. You can evaluate HOA health by reviewing budgets, reserve studies, minutes, assessment history, and any litigation disclosures.
TICs rely on the private agreement. Some TICs maintain robust reserves and regular budgeting. Others operate ad hoc and raise funds through capital calls when large projects arise. Read the TIC agreement and review reserve balances, assessment history, and owner meeting notes to understand how the group handles major work.
Seismic retrofit and older buildings
Many older Noe Valley buildings may need soft‑story seismic retrofits or other upgrades. In condos, the HOA typically manages these projects and allocates costs. In TICs, the agreement will determine who pays, how, and when. Before you buy, confirm retrofit status, timelines, and cost‑sharing rules.
Resale and liquidity in Noe Valley
Condos tend to have a larger buyer pool. They are familiar to most lenders and buyers, which can support faster sales and smoother appraisals. Investors and buyers using a variety of loan products can often participate if the project meets eligibility standards.
TICs often have a smaller, more specialized buyer pool. Some buyers are less familiar with TIC mechanics, and fewer lenders participate. This can lengthen time on market and affect pricing power. Appraisals can also be more challenging if there are few recent TIC comparables in the immediate area.
Leasing and occupancy rules
Both condos and TICs can have rules on leasing and occupancy. In San Francisco, local rent regulations apply at the unit level. TIC agreements may include owner‑occupancy requirements, subletting rules, or rights of first refusal among owners. Condo CC&Rs may also limit leasing. Always review the documents before you make an offer.
Conversion potential
Some TIC buildings can convert to condos, but conversion is heavily regulated, can be costly, and often takes time. You may need to complete building upgrades and meet strict requirements. Conversion potential can influence long‑term value, but you should not assume it is a near‑term option without a project‑specific assessment.
What to check when touring
Use this checklist to compare a specific Noe Valley TIC or condo.
Building facts
- Address, year built, number of units, and architectural style
- Unit size, bedroom and bath count, and floor level
- Parking details, storage, and any EV or bike facilities
- Separate or shared meters for gas, electric, and water
Ownership documents
- Condos: CC&Rs, bylaws, condo map, HOA budget, reserve study, recent meeting minutes, insurance declarations, assessment and litigation history
- TICs: full TIC agreement, occupancy allocations, operating budget, reserve details, insurance declarations, any master mortgage documents, meeting notes, assessment and litigation history
Financing items
- Presence of a master mortgage and how releases work on sale
- Any lender restrictions on transfers
- Names of lenders that have recently financed similar TICs in the neighborhood
Monthly costs
- Line‑by‑line breakdown of monthly obligations
- For TICs: what portion is mortgage share versus operating costs
- Assessment history and any known upcoming projects
Insurance and liability
- Master policy coverage and deductible amount
- Required owner policy type and coverage limits
- Earthquake coverage status and cost
Systems and structure
- Seismic retrofit status and documentation
- Roof age and condition
- Electrical system type, including any knob‑and‑tube
- Plumbing material and any history of leaks
- Foundation, pest, and wood‑rot reports
Governance and rules
- For condos: HOA meeting cadence, rental and pet policies, guest rules
- For TICs: dispute resolution process, transfer and right‑of‑first‑refusal terms, occupancy or leasing limits
Resale signals
- Recent comparable sales for both TICs and condos nearby
- Typical days on market for similar properties
- Any local changes that might affect value
Litigation and title
- Recorded liens and any pending litigation
- Code violations or open permits
Pre‑approval checklist
- For TIC buyers: pre‑approval with a lender experienced in TICs and early delivery of the TIC agreement to your lender
- For condo buyers: confirm project eligibility with your lender, especially if you plan to use FHA or VA
Who each option fits
You may prefer a condo if
- You want widely available financing and a larger lender pool.
- You like formal HOA structure, predictable processes, and established reserves.
- You value a broad future buyer pool and more straightforward appraisals.
You may consider a TIC if
- You want an ownership path into a prime Noe Valley building and are comfortable with a more specialized product.
- You are prepared to work with a TIC‑savvy lender and review detailed agreements.
- You can navigate varied governance structures and are ready to compare full costs, not just headline dues.
Your next steps
Start by clarifying whether the listings you love are condos or TICs, then get pre‑approved accordingly. Review the documents early, compare the full cost of ownership, and assess reserves, retrofit status, and appraisal risk. A thoughtful plan will help you write a strong, confident offer.
If you want a steady guide through the details, reach out. As a neighborhood‑savvy advisor with a trusted lender and vendor network, I can help you evaluate specific buildings, gather documents, and create an apples‑to‑apples comparison so you can move forward with clarity. Connect with Claudia Siegel to start a focused conversation about your Noe Valley options.
FAQs
What is the main legal difference between a TIC and a condo in San Francisco?
- A condo is fee‑simple ownership of a unit plus a share of common areas, governed by an HOA; a TIC is a fractional share of the whole property with unit occupancy and rules defined by a private TIC agreement.
Which is easier to finance in Noe Valley, a TIC or a condo?
- Condos are generally easier to finance because more lenders and loan products are available; TIC financing exists but is specialized and typically requires a TIC‑experienced lender and extra documentation.
How do TIC monthly payments compare to condo HOA dues?
- It depends on what is included; TIC payments can include a share of a master mortgage plus operating costs, while HOA dues usually do not include a mortgage, so compare total monthly cost, not just dues.
Will a TIC be harder to sell than a condo in Noe Valley?
- Often yes; TICs tend to have a smaller buyer pool and fewer lenders, which can affect days on market and negotiation, though location, condition, and pricing still drive outcomes.
What should I review before making an offer on a TIC?
- Review the full TIC agreement, budget, reserves, insurance, master mortgage details, assessment history, meeting notes, and any building retrofit or major repair plans.
How are property taxes handled for TICs versus condos in California?
- Condo units are separately assessed and are reassessed at sale; TIC sales generally trigger reassessment of the buyer’s fractional interest, so confirm the allocation in the TIC agreement.
Can a TIC convert to a condo in San Francisco?
- Sometimes, but conversion is highly regulated, can be costly, and takes time; do not assume conversion is feasible without a building‑specific review of requirements and costs.
