Cohousing-L Mailing List: Re: TIC financing in California

[Sharon Villines (sharon]

On Aug 21, 2024, at 2:09 AM, fernselzer--- via Cohousing-L <cohousing-l [at] 
cohousing.org> wrote:
> 
> Hi folksDo any cohousing communities in California have a TIC?   If so, where 
> do you get your mortgages?

I had to look this up so I’m sharing:

> What is a TIC loan?

> A Tenancy in Common (“TIC”) is a legal way of holding an undivided interest 
> in real property, or more simply, allowing for a multi-unit building to be 
> owned by multiple parties. With TIC agreements and financing, each party has 
> exclusive use and ownership of their unit.

In the East this is called a cooperative, a form of ownership that predated 
condominiums. In a coop, each person owns a percentage interest in exchange for 
residing in an apartment. Banks don’t like them because owners can’t just sell 
their units. The Coop owns everything jointly and has a reputation of being 
difficult in choosing a new owner.

Wouldn’t the mortgage be held by the organization? Are you incorporated? Some 
people have discussed mortgages co signed by each owner but the loan is to the 
corporation.

As I understand it, this form of ownership began with the big mansions in New 
York City. The owners of the building sort of took in partners who were 
necessary to continue to support the buildings. They were divided in various 
ways into apartments, or suites.

Sharon
----
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org