Is a character-filled Silver Lake fourplex calling your name, but the listing says “TIC” and you are not sure what that means? You are not alone. Tenancy‑in‑common ownership can open doors to design-forward homes at approachable prices, but it also works differently than condos. In this guide, you will learn how TICs work in Los Angeles, how financing and resale differ, and what to review before you even tour. Let’s dive in.
What a TIC is
A tenancy‑in‑common is shared ownership of one property where you own a percentage interest, not a separately deeded unit. Your exclusive occupancy agreement gives you the right to live in a specific unit, even though all owners hold undivided interests in the whole building. The recorded TIC Agreement sets rules for expenses, maintenance, voting, transfers, right of first refusal, and default remedies. Title is insured to your fractional interest, and your deed reflects your percent share.
Why TICs show up in Silver Lake
Many Silver Lake and Los Feliz buildings were never subdivided into condos. Owners often sell fractional interests so buyers can own and occupy a single unit. You will see TICs in pre‑war, Spanish Revival, mid‑century, and modern boutique conversions that attract design-focused buyers. Per‑unit prices can be lower than nearby condos or single‑family homes, depending on building condition and financing.
Los Angeles rules to know
Los Angeles tenant protections matter. Buildings covered by the Rent Stabilization Ordinance (RSO) keep those protections, which can affect occupancy, rent policies, and resale. Confirm the property’s RSO status and whether any units are tenant‑occupied with protected status.
Seismic and safety standards are another key factor. Many multi‑unit buildings fall under mandatory retrofit programs, including soft‑story work. Ask for permit history and proof of completed work, and confirm compliance with city requirements.
Do not assume a future condo conversion. Converting a TIC to condos requires city approvals, can be costly and slow, and may be blocked by tenant protections or zoning. Treat condo conversion as a separate, uncertain project.
Expect property tax reassessment on transfer. Under Proposition 13, the county may reassess the transferred share when interests change hands. Consult the Los Angeles County Assessor and a tax advisor about how reassessment could apply to a fractional interest you acquire.
Finally, review title and recorded documents. Look for vesting deeds, the recorded TIC Agreement, easements, and any loans or liens. Title insurance for fractional interests is available, but the coverage and exceptions deserve a careful read.
Financing reality for TICs
Financing a TIC is not the same as financing a condo. There are fewer lenders, more paperwork, and stricter terms because many mainstream programs limit TIC eligibility. Plan for a larger down payment, often 20 to 30 percent for owner‑occupants, with rates that can be modestly higher than standard conforming loans.
Lenders often prefer owner‑occupants and will review the TIC Agreement, building budget, reserves, and any existing loans. Some properties carry a blanket master mortgage that encumbers the whole building. If one owner defaults in that structure, others can face exposure, depending on the agreement and loan terms.
Government-backed options are limited. FHA and VA financing are often not available for TICs. If you need those programs, verify eligibility right away. Most buyers use conventional or portfolio lenders that understand fractional interests.
Practical next steps:
- Get pre‑approved with a lender who regularly finances TICs.
- Ask for a pre‑approval that specifically states it covers a TIC purchase.
- Request the TIC Agreement, financials, and any master loan documents before you write an offer.
TIC vs condo: key differences
Ownership and control differ. A condo gives you a deed to an individual unit plus a share of common areas. A TIC gives you a percent interest in the entire property with the right to occupy a specific unit, governed by the TIC Agreement.
Pros of TICs:
- Access to unique architecture and character-rich buildings.
- Potentially lower purchase price per residence than nearby condos or homes.
- Flexible structures that can suit small buildings and boutique settings.
Cons of TICs:
- Fewer lenders, larger down payments, limited FHA/VA.
- Possible shared risk if a master mortgage exists and a co‑owner defaults.
- Resale limits from right of first refusal or transfer rules in the agreement.
- Smaller buyer pool than condos, which can affect time on market and price.
If easy resale is a top priority, condos often offer broader lender acceptance and a larger audience of buyers.
Due diligence before you tour
Save time by gathering key documents early. Ask the listing agent for a document package and review with your agent, lender, and, if needed, a TIC‑savvy attorney.
Request these items:
- Recorded TIC Agreement and any amendments.
- Exclusive Occupancy Agreement for the specific unit.
- Building budget, reserve balance, recent financials, and any special assessments.
- Copies of any master mortgage, notes, or recorded liens.
- Insurance policies and claim history.
- Permit history, finaled permits, and proof of required seismic retrofits.
- RSO status confirmation and any tenant leases if units are tenant‑occupied.
- Preliminary title report and exceptions for the fractional interest.
- Minutes of owner meetings, outstanding disputes, or pending litigation.
Plan your inspections:
- Whole‑building inspection with attention to roof, foundation, plumbing, electrical, and water intrusion.
- Pest inspection and moisture testing where indicated.
- Verification that past renovations were permitted and finalized with the city.
Renovation and design plans
If you want to remodel, confirm what the TIC Agreement requires for approvals. Some agreements need unanimous consent for major alterations that affect structure or common systems. You still must follow city permitting and building codes, including seismic rules. Align your design scope with the agreement and timeline so your project stays on track.
Resale in Silver Lake
TICs can resell well when the building has strong design appeal, low deferred maintenance, and clear, fair agreements. Even then, the buyer pool is smaller than for condos because financing is specialized. Review prior sales in the building, days on market, and any patterns of price reductions to gauge marketability.
Transfer rules matter. Rights of first refusal or co‑owner approval requirements can add steps or time to your sale. A healthy reserve fund, clear documentation, and evidence of completed retrofit work can help your TIC stand out to cautious buyers.
How we guide your TIC search
You deserve a smooth, design‑informed experience. We help you source the right TICs, coordinate lender introductions, and review agreements, financials, and permits so you can move forward with confidence. If a property fits, we craft offers that protect your financing timeline and due diligence needs.
Ready to explore Silver Lake TICs with a trusted partner? Connect with Mikka Johnson for a concierge consultation.
FAQs
What do you own in a TIC vs a condo?
- In a TIC you own a fractional interest in the whole property with exclusive rights to a specific unit, while a condo gives you a deed to a separate unit plus shared common areas.
Can you finance a TIC in Los Angeles?
- Yes, but there are fewer lenders, larger down payments are common at 20–30 percent, and government‑backed FHA/VA options are often limited.
What if a co‑owner stops paying in a TIC?
- Your risk depends on whether a master mortgage exists and what the TIC Agreement states about defaults, remedies, and cost sharing across owners.
Can you rent your TIC unit in Silver Lake?
- It depends on the TIC Agreement and local tenant protections; review the agreement’s leasing rules and confirm any RSO implications before you buy.
Can you convert a TIC to condos later?
- Conversion requires city approvals and can be expensive, slow, and limited by tenant protections, so you should not assume an easy or guaranteed conversion.
What documents should you review first?
- Start with the TIC Agreement, occupancy agreement, building financials and reserves, title report, any master loan, permit history, retrofit proof, and RSO status.
How does resale compare to condos in Silver Lake?
- TICs can resell well in standout buildings, but buyer pools and lender options are smaller than condos, which can affect time on market and pricing.
