TIC's Can Be a Headache
Buying Oakland Real Estate
They have been common in SF for years, but only in the past several years have we started to see TIC or "Tenant In Common" units for sale. Unlike a condo, ownership as a TIC means that instead having a deed to the property, you own a 25% or 50% (depending on how many units) interest in the whole building.
Perhaps the biggest drawback to TIC's is the financing that is associated with them. Lenders view TIC units as a higher risk compared to conventional condo units, therefore they require larger downpayments and charge higher interest rates on loan for TIC real estate. I have seen several TIC real estate projects in Oakland in the last couple of years that were on the market for months and never sold because of the fact that it is so much harder to obtain the financing. The ppside to TIC's is that they are usually more affordable than a comparable condominium.
Date: Friday, January, 4th 2008 @ 02:56:06 PM
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