WHY CREATE A TIC RATHER THAN MERELY USE THE CONDOMINIUM STRUCTURE?
San Francisco severely restricts both new condo construction and conversion of older buildings to condos, keeping the cost-per-unit of condos much higher the cost-per-unit of apartment buildings. In addition, TICs can often be converted into condos after a period of owner-occupancy. The conversion is voluntary with the TIC owners at a later date. While other Bay Area communities do not restrict condo conversion as much, it is usually much more expensive to create the copious documentation necessary for a condo conversion than for a TIC. 3. HOW ARE TICs STRUCTURED USUALLY? In most TICs, a “relative value percentage” is assigned to the areas (dwelling. parking, storage, deck etc.) that each owner will occupy. The value is altered at times by unique factors that apply to a particular apartment within the building. Factors that affect relative value percentage include size, level within the building, light, views, and general condition. The percentages are typically determined through an a
