Are TICs Condominiums?
Continuing to pick up information from the Andy Sirkin seminar on TICs, one of the questions he addressed, and one of the ones I get all of the time, is “So are these condominiums?”
At Pacific Trail Townhomes , we are very careful to explain these are not condos. However, living in this development is very similar to living in a condo.
For openers, it looks like a condo - two buildings, multi-units, nicely landscaped and cared for, unlike most apartment buildings. Every unit gets it’s own parking space and storage unit, just like a condo. There’s common areas that everyone can use, like a condo.
And probably most similar to a condo, there is a TIC agreement that creates a Homowner’s Association, just like in a condo. This one is very heavily regulated by the state, and is therefore pretty conservative - something we haven’t always seen in Marin County Homeowner’s Associations. The funding for reserves is very strong, and now that it is up and running, the reserve fund will probably build quickly.
Each unit is individually financed, and you are free to buy, remodel, and sell when you want to - just like in a Condo.
There are more similarities than differences, so the overall experience is, we believe, like living in a condo.
