Shopping in Russian Hill and coming across TICs, condos, and co-ops? It is normal to feel unsure about what each one really means for your lifestyle, financing, and resale. The right choice depends on how you plan to live, your down payment and loan needs, and your comfort with building rules. This guide breaks down the essentials so you can compare options with clarity and confidence. Let’s dive in.
What each option really means
Tenancy-in-Common (TIC)
A TIC is shared ownership of the entire building where you hold a fractional deeded interest, not a separately mapped unit. Your rights and duties live in a written TIC agreement that covers cost sharing, decision making, and rules for selling or subletting. TICs are common in Russian Hill and nearby neighborhoods because many pre-war buildings could not easily convert to condominiums.
In practice, your day-to-day experience depends on the quality of the TIC agreement and your co-owners. Pay close attention to how expenses and reserves are handled, what happens if someone defaults, and any limits on renting or renovations.
Condominium (Condo)
A condo gives you separate title to your unit and a shared interest in common areas, with a homeowners association (HOA) overseeing operations. HOAs follow California’s Davis-Stirling Act, which sets rules for budgets, reserves, meetings, and disclosures. Buyers often prefer condos because title is straightforward and mortgages follow standard programs when the project meets lender eligibility.
You will review CC&Rs, bylaws, budgets, reserve studies, meeting minutes, and insurance coverages, then weigh dues, special assessment history, and any rental or renovation rules.
Cooperative (Co-op)
In a co-op, you buy shares in a corporation that owns the building and receive a proprietary lease for your apartment. The board controls admissions and sets policies on subletting, renovations, and finances. Some San Francisco co-ops carry a blanket mortgage, which affects monthly fees and individual financing.
Expect board interviews and approval, more lender scrutiny, and rules designed to protect the building’s stability and long-term character.
How ownership affects financing
Financing is often the biggest practical difference among TICs, condos, and co-ops in San Francisco.
Condos: broadest lender access
Most banks and mortgage companies underwrite condo loans if the building meets project eligibility standards. Down payment options are widely available, and conventional programs are common. You and your lender will review HOA reserves, owner-occupancy ratios, and any pending litigation or special assessments.
If you want a refresher on mortgage basics and how to compare offers, the CFPB’s step-by-step homebuying pages are a helpful starting point.
TICs: specialized programs and stricter terms
TIC financing is offered by a smaller set of local or specialty lenders, and terms are often tighter. You may see larger down payment requirements, fewer loan product choices, and slightly higher rates. Lenders want to see a clear TIC agreement with enforceable default remedies, and some require primary occupancy.
Financing limits narrow the buyer pool. This can help you on price when buying, yet it can also affect liquidity when you sell.
Co-ops: share loans and board oversight
Some banks make “share loans” for co-ops, but underwriting varies. Lenders look closely at the co-op’s financial statements, any blanket mortgage, and subletting policies. Down payments of 20 to 30 percent are common. A board’s refusal to approve a buyer can halt a purchase even when financing is in place.
If you are exploring government-backed options, FHA condo approvals are specific to projects. You can learn more from HUD’s overview of condominium approvals, then confirm details with your lender.
Resale and liquidity in Russian Hill
- Condos typically offer the broadest buyer pool and the most standardized financing, which supports stronger resale liquidity in Russian Hill and neighboring Nob Hill and North Beach.
- TICs usually have a smaller buyer pool because of financing constraints, so they can trade at a discount to comparable condos. Your outcome depends on market timing, building condition, and how strong the TIC agreement is.
- Co-ops can offer a stable, quiet ownership experience. Resale speed depends on board practices, sublet rules, and the co-op’s finances.
Board and rules: what to expect day to day
TIC life
You and your co-owners share maintenance, insurance, and common systems. The TIC agreement should spell out who pays what, how decisions are made, and what happens if someone stops paying. Renovations and exterior work usually require coordination and consent.
Condo HOA life
HOA dues cover operations, insurance, and reserves. Boards follow the state’s HOA framework, the Davis-Stirling Act, which sets disclosure and meeting rules. Review reserve studies, insurance, and special assessment history to understand long-term costs.
Co-op life
Co-op fees can include building debt service, taxes, and utilities. Boards interview buyers, set sublet and renovation policies, and focus on the building’s financial health. Expect a defined application process and timelines for approvals.
What to review before you write an offer
For TICs
- Recorded TIC agreement and any amendments
- Deeds showing fractional interests and any shared or blanket mortgages
- Master insurance policy, reserve policy, and recent repairs
- Selling and subletting rules, plus any right of first refusal
- Notes or minutes from owner meetings, if any
For Condos
- CC&Rs, bylaws, and HOA rules
- Budget, reserve study, financials, and delinquency rates
- Recent board minutes and any pending or past litigation disclosures
- Master insurance details and interior coverage expectations
- Assessment history and any planned capital projects
For Co-ops
- Proprietary lease, bylaws, and house rules
- Board application requirements and approval timelines
- Corporate financial statements, balance sheet, and any blanket mortgage
- Sublet policies and renovation approval process
For a broader overview of ownership forms and consumer advisories, the California Department of Real Estate’s consumer resources are useful background.
Quick comparison: TIC vs Condo vs Co-op
| Feature | TIC | Condo | Co-op |
|---|---|---|---|
| Legal title | Undivided fractional interest in the whole property plus a TIC agreement | Fee simple title to a unit plus shared common elements | Shares in a corporation plus a proprietary lease |
| Core documents | TIC agreement, deeds, insurance, any association rules | CC&Rs, bylaws, budgets, reserve study, minutes | Proprietary lease, bylaws, financials, board rules |
| Ease of financing | Limited, specialized lenders, stricter terms | Broad access through conventional programs, some government-backed options | Limited, share loans, board and corporate debt influence terms |
| Typical down payment | Often 20–30 percent or more | As low as 3–5 percent for some programs, often 10–20 percent | Often 20–30 percent or more |
| Resale/liquidity | Smaller buyer pool and slower resale | Broadest buyer pool and strongest liquidity | Intermediate, board approval can slow sales |
| Governance | Defined by TIC agreement, can be informal or association-like | HOA governed by Davis-Stirling with formal protections | Strong board control with buyer approval and sublet limits |
| Common buyer risks | Ambiguous agreement, exposure if a co-owner defaults, financing limits | Special assessments, weak reserves, litigation risks | Board rejection risk, corporate debt, restricted resale |
Local factors in Russian Hill, Nob Hill, and North Beach
These neighborhoods are rich with pre-war buildings, classic facades, and a mix of TICs, older condos, and select co-ops. In this vintage housing stock, plan for careful review of seismic retrofits, plumbing, and building envelope projects. Strong reserve planning can make a big difference in long-term costs.
On-street or leased parking is common, and in-building parking can be limited. If you plan to rent out your unit in the future, review applicable local rules early. The San Francisco Rent Board provides general information on rent control and tenant protections, and the San Francisco Planning Department is your hub for local approvals, including condominium conversions.
Next steps and trusted resources
- Speak with a mortgage professional experienced in San Francisco TICs, condos, and co-ops, and get written pre-approval terms for your specific property type.
- Have an attorney review TIC agreements, CC&Rs, bylaws, and proprietary leases before removing contingencies.
- Order or request the full document set early so you have time for careful review and questions.
- Confirm what the master insurance policy covers and coordinate your own policy as needed.
- For mortgage-shopping guidance, start with the CFPB’s homebuying tools. For project-level condo approvals, see HUD’s condo guidance. For HOA governance law in California, review the Davis-Stirling Act text.
If you want tailored advice on how these choices play out on a specific Russian Hill property, reach out. As a native San Franciscan with deep experience in luxury condos and classic buildings, I can help you evaluate documents, coordinate the right experts, and position your offer with confidence. Connect with Meagan Levitan for a private consultation.
FAQs
Can I get an FHA loan for a TIC in San Francisco?
- FHA financing for TICs is limited and changes over time. Many TIC structures are not FHA-eligible, so check current rules with lenders who do TIC loans and verify program details in writing.
Are TICs cheaper than condos in Russian Hill?
- Often yes because the buyer pool is smaller due to financing limits. Actual pricing depends on building condition, location, reserves, and current market dynamics.
Can I convert a TIC to a condo in San Francisco?
- Sometimes, but it requires coordination among owners and city approvals. Review local procedures with the San Francisco Planning Department and consult an attorney before pursuing conversion.
Are co-ops common in San Francisco?
- Co-ops exist but are less common than condos and TICs in San Francisco. They are present in select buildings and tend to have defined board approval processes.
How do reserves and special assessments impact my costs?
- Strong reserves can smooth out large projects like seismic upgrades or exterior work. Weak reserves can lead to special assessments, so review budgets, reserve studies, and project lists closely before you buy.
