What Is a TIC?
A tenancy in common (TIC) is a form of shared ownership: instead of holding the deed to a single unit the way you would in a condo, you and your co-owners each own a percentage share of the entire building. A recorded occupancy agreement then gives you the exclusive right to live in your specific unit. In practice it lives much like a condo — you have your own home — but the legal and financing structure underneath is different.
TIC vs. Condo
The headline difference is price: TICs typically sell for 10–20% less than a comparable condo, which is why they’ve become a real on-ramp to ownership in expensive LA neighborhoods. The structural difference is the deed — a percentage of the whole property rather than title to one unit — governed by a Tenancy-in-Common Agreement that spells out each owner’s rights, costs, and responsibilities.
Illustrative; actual savings vary by building and market. Informational only — not legal, tax, or financial advice.
How TIC Financing Works in Los Angeles
This is where TICs differ most from a normal purchase, and where buyers most often get tripped up. There are two broad paths:
Fractional loans — an individual loan underwritten to your fractional interest, often with around 15% down and loan amounts up to roughly $2M. Each owner has their own mortgage and their own liability, which feels much like a condo loan. These are offered by a small set of specialized TIC lenders.
Group (building-level) loans — a single loan encumbering the whole property that multiple owners sign, creating shared liability for everyone’s payments. Older TICs sometimes still carry these, and they deserve a close read.
Note that FHA and VA financing is generally limited for TICs, and conventional Fannie Mae / Freddie Mac programs don’t neatly fit the structure — so the move is to connect with a lender who underwrites TICs before you start shopping. (Our Is a TIC Right for Me? piece goes deeper on fit, and our $499K LA buyer guide walks a real TIC example.)
Why TICs Are Popular in LA
Unlike San Francisco, where TICs grew out of strict condo-conversion laws, LA’s TIC market is driven mostly by affordability — buyers priced out of condos and single-family homes finding a path into walkable, central neighborhoods. You’ll see them most in areas like Silver Lake, Echo Park, West Hollywood, Highland Park, and Mid-City.
The Real Risks — and the Due Diligence
TICs reward homework. Before you write an offer: read the TIC Agreement carefully (have an attorney review it), understand whether the building uses fractional or group loans (and therefore your liability exposure), confirm how property taxes are allocated, and think through resale — the buyer pool is smaller than for condos, so pricing and timing matter more. None of these are dealbreakers; they’re simply the things a good agent and attorney help you navigate.
Costs & Taxes
LA County typically issues a single property-tax bill that the TIC owners’ association allocates among owners — usually by purchase price, so one owner’s resale doesn’t reset everyone else’s basis. Owners generally deduct their share of mortgage interest and property taxes. (Confirm specifics with your tax advisor — this is general information, not tax advice.)
The hard part of a TIC isn’t finding one — it’s reading the agreement, the loan structure, and the building correctly. That due-diligence read is exactly what we do for buyers, so you get the affordability upside without the avoidable risk.
Is a TIC Right for You?
A TIC can be a smart way into a neighborhood you love at a price that works — especially for first-time buyers, co-buyers, and investors comfortable with the structure. The key is going in informed. If you want to pressure-test the numbers, our investment calculator is a good place to start, and we’re happy to walk a specific listing with you.
