Condo vs TIC vs Co‑op In San Francisco Explained

November 21, 2025

Thinking about buying in SoMa but not sure whether a condo, TIC, or co-op is right for you? You are not alone. These ownership types shape how you finance, what you actually own, your monthly costs, and how easy it is to resell. This guide breaks down the differences with a SoMa lens so you can move forward with clarity. Let’s dive in.

Quick definitions

Condo

You own a defined unit plus a share of the common areas, all governed by recorded CC&Rs and HOA rules. You receive an individual deed and a separate property tax bill. This is the most familiar and mortgage-friendly path for SoMa buyers.

TIC

You own a fractional interest in the entire building and use a specific unit under a private TIC Agreement. Some TICs have individual mortgages; others share a master mortgage. The agreement controls rights, expenses, transfers, and day-to-day rules.

Co-op

A corporation owns the building; you buy shares and receive a proprietary lease to live in a specific unit. Transfers often require board approval. Financing is a share loan and monthly payments may include your portion of property tax and any building mortgage.

What you own and pay

Ownership and governance

Condos: An HOA manages common areas, budget, insurance, and reserves. You vote as a unit owner.
TICs: No statutory HOA unless created; the TIC Agreement sets how repairs, expenses, and decisions work.
Co-ops: A board oversees the corporation. House rules and the proprietary lease govern use and transfers.

Insurance differences

Condos: The HOA carries a master policy for structure and common areas. You carry an HO-6 policy for interiors, contents, and deductible coverage.
TICs: Confirm whether a master policy exists and what your individual policy must cover. The TIC Agreement should spell out indemnities.
Co-ops: The corporation insures the building. You may need contents and liability coverage based on board rules.

Assessments and reserves

Condos: Review the reserve study, budget, and any special assessments. In high-amenity SoMa towers, major projects like façade or seismic work can be significant.
TICs: Reserves vary because there are no statutory requirements. Expect owners to vote on assessments for big repairs.
Co-ops: Boards may levy assessments if budgets do not cover expenses. Reserve practices vary by building.

Financing at a glance in SoMa

Condos: Widest lender acceptance including conventional loans. FHA or VA can be possible if the project has approvals. Down payments range widely, with many local buyers using 10 to 20 percent or more.
TICs: Fewer lenders and often portfolio or specialty TIC loans. Expect larger down payments of about 20 to 30 percent, stricter underwriting, and more cash reserves. Master mortgages, if present, can affect transfers.
Co-ops: Financing exists but choices are narrower and often require a share loan. Many lenders ask for larger down payments, and the board approval process can influence timing.

Resale and marketability

Buyer pool: Condos draw the largest audience, which supports more predictable resale pricing. Co-ops and TICs have smaller buyer pools due to financing and approval hurdles.
Timing: Condo sales follow a typical path with lender condo review. TIC and co-op sales can take longer due to agreement reviews, board approvals, or shared mortgage logistics.
SoMa pricing context: Newer high-rise condos with amenities often command leading prices per square foot. Older loft conversions and multifamily buildings that are TICs or co-ops may sell at a discount compared with comparable condos.

SoMa building types and key risks

High-rise towers and podium buildings

Most new SoMa towers are condominiums with formal HOAs. Review structural history, reserves, and any special assessments for systems like elevators and HVAC.

Converted lofts and low-rise flats

These can be condos, TICs, or occasionally co-ops. Older conversions may have unpermitted work that affects insurability or future plans.

Older wood-framed multifamily

Some are TICs and may be subject to seismic retrofit rules. Confirm compliance status and budget for required work.

Structural and legal case studies

High-profile issues such as settlement and remediation at a well-known SoMa tower illustrate why you should check for building litigation, engineering reports, and special assessments before you buy. Ask for details on remediation plans and funding.

Conversion and regulatory notes

Condominium conversion: San Francisco has specific rules and tenant protections for condo conversion. A TIC’s conversion eligibility depends on city procedures and owner votes.
Tenants and rent control: Older SoMa buildings may be subject to local rent control rules. If you plan to purchase where tenants live, understand obligations and any required payments.
Property tax basics: Condo buyers receive an individual tax bill, with reassessment at transfer under standard rules. TIC transfers can trigger reassessment of the fractional share. Co-ops often allocate property tax through monthly maintenance. Consult a tax professional for your situation.

Due diligence checklist

For all ownership types

Read governing documents: CC&Rs and bylaws for condos, TIC Agreement for TICs, proprietary lease and bylaws for co-ops.
Review 2 to 3 years of financials, the current budget, and any reserve studies.
Read meeting minutes for the past 12 to 24 months.
Check for active litigation, judgments, or special assessments.
Verify insurance coverage, limits, and deductibles, plus your personal policy needs.
Order a full inspection, including structure, roof, elevators, HVAC, and seismic elements where relevant.
Confirm permits and zoning, and flag any unpermitted work.
Review the title report for liens, easements, or master mortgages.

TIC-specific

Read the full TIC Agreement for sale and transfer rules, partition rights, rental policies, and expense allocation.
Confirm whether a master mortgage exists and how payoffs or consents work.
Ask lenders about down payment expectations and program availability for your specific TIC.
Request an estoppel or written statement from any master lender about transfer terms.

Co-op-specific

Review corporate financials, house rules, the board interview process, sublet policies, and any building mortgage.
Verify how property taxes are paid and allocated in monthly maintenance.
Check improvement rules, transfer fees, and any flip taxes.

Which option fits you

Choose a condo if you want the easiest financing, the broadest resale market, and a predictable process.
Consider a TIC if you prioritize a lower entry price in an older building and are comfortable with a smaller lender pool and a detailed agreement.
Look at a co-op if you value a cooperative community and are fine with board review and share-loan financing.

When to bring in specialists

Real estate attorney for TIC Agreements, proprietary leases, and complex condo CC&Rs.
Mortgage broker or lender with TIC or co-op experience.
Structural engineer with high-rise and seismic expertise, especially for SoMa towers or soft-story buildings.
Title company familiar with TIC title issues and co-op share transfers.
HOA or co-op attorney to assess reserves and special assessments.
CPA or tax attorney for property tax and personal tax planning.

Buying in SoMa rewards a clear plan. Match your goals to the right ownership type, confirm the building’s structural and financial health, and secure financing that fits your timeline. With the right team and a focused review, you can buy with confidence.

If you want a private walkthrough of specific SoMa towers and loft options, or a second opinion on a building’s documents and reserves, schedule a private consultation with Sean Mamola.

FAQs

What is the main difference between a condo, a TIC, and a co-op?

A condo gives you title to a specific unit, a TIC gives you a fractional share of the whole building with rights to a unit by agreement, and a co-op gives you shares plus a proprietary lease.

How does financing differ for condos, TICs, and co-ops in SoMa?

Condos typically qualify for conventional loans, TICs use specialty or portfolio loans with larger down payments, and co-ops use share loans with a narrower lender pool.

What should I review in a SoMa high-rise condo HOA?

Look at the reserve study, recent minutes, budget, insurance deductibles, and any special assessments for structural, façade, elevator, or seismic projects.

Are TICs harder to resell than condos in San Francisco?

Generally yes, because of limited financing and a smaller buyer pool, which can lead to longer timelines and potential pricing discounts versus comparable condos.