Question 1

What is a TIC and how does it differ from a condo in San Francisco?

Accepted Answer

A tenancy in common (TIC) is co-ownership of a single property where you own a fractional interest and have exclusive-use rights to a specific unit, governed by a private TIC Agreement. A condominium gives you a separate deed to your unit plus shared interest in common areas, regulated under California's Davis-Stirling Act. Condos offer simpler financing with conventional mortgages, while TICs require specialized lenders, larger down payments (20-30%), and often higher interest rates. TICs are typically priced lower but have a smaller resale buyer pool.

Question 2

How does San Francisco's transfer tax work, and who pays it?

Accepted Answer

San Francisco imposes a real property transfer tax on all property sales with tiered rates based on sale price. For properties up to $250,000 the rate is approximately 0.5%; from $250,001 to $1M it is 0.68%; from $1M to $5M it is 0.75%; from $5M to $10M it jumps to 2.25%; from $10M to $25M it is 5.5%; and over $25M the rate is 6%. By local custom, the seller typically pays the transfer tax in San Francisco, though this is negotiable. For example, a $1.5M condo sale would generate approximately $11,250 in transfer tax.

Question 3

How does Proposition 13 affect property taxes when I buy in San Francisco?

Accepted Answer

Under California's Proposition 13, property tax is capped at 1% of the assessed value (the purchase price) plus local voter-approved bonds, and annual increases are limited to no more than 2% per year regardless of market appreciation. When you purchase a property, it is reassessed at the current market value (your purchase price), which becomes the new base. Proposition 19, passed in 2020, allows homeowners aged 55+ or those affected by natural disaster to transfer their tax base to a replacement property anywhere in California, with adjustments for price differences.

Question 4

What are the condo conversion rules in San Francisco?

Accepted Answer

San Francisco's Condominium Conversion Program allows buildings of six units or fewer to convert from TIC or rental to condominium ownership. Owners must have occupied at least 50% of units for three continuous years before entering the annual lottery, which is capped at 200 units per year with a significant backlog. The Expedited Conversion Program (ECP) is available for two-unit buildings. Protected tenants including seniors (60+), disabled persons, and families with children have a right to purchase or receive a lifetime lease. Past eviction history can disqualify buildings from conversion.

Question 5

Do San Francisco rent control rules affect homebuyers?

Accepted Answer

Yes, significantly. San Francisco's Rent Ordinance covers most rental units built before June 1979. If you purchase a multi-unit building with rent-controlled tenants, those tenancies and their below-market rents transfer with the property. Owner move-in evictions are permitted under strict rules but require relocation payments and are subject to restrictions including a prohibition on re-renting the unit at market rate for several years. Buyers of multi-unit properties should carefully review existing tenant leases, rental history, and any prior eviction notices.

Question 6

What pre-sale inspections are required or recommended in San Francisco?

Accepted Answer

While not all are legally mandated, San Francisco sellers are strongly advised to complete several inspections before listing. These include a general home inspection, pest (wood-destroying organism) inspection, and for multi-unit wood-frame buildings, verification of Mandatory Soft-Story Retrofit compliance. San Francisco also requires a Water Conservation Inspection before close of escrow, confirming fixtures meet low-flow standards. Sellers must provide a 3R Report showing permit history, and for pre-1978 homes, federal lead-based paint disclosure is required. Seismic bracing of water heaters is mandated by California law.

Question 7

What types of financing work for San Francisco real estate?

Accepted Answer

Given San Francisco's high property values, most purchases require jumbo loans (exceeding the conforming limit, which is $1,209,750 for San Francisco County in 2026). Jumbo loans typically require 10-20% down, strong credit scores (700+), and higher cash reserves. For condos, conventional and some FHA/VA financing may be available if the building has project approval. TICs require specialized portfolio lenders with 20-30% down payments. All-cash offers remain common in competitive situations, and bridge loans can help buyers who need to sell before purchasing.

Question 8

What should I know about seismic safety when buying in San Francisco?

Accepted Answer

San Francisco sits on several fault lines and has mandatory seismic retrofit requirements. The Mandatory Soft-Story Retrofit Program requires wood-frame buildings with five or more units and specific structural vulnerabilities to be retrofitted. Buyers should review any seismic retrofit history, check if the building is on the city's soft-story list, and consider a structural engineering assessment for older properties. Earthquake insurance is separate from homeowner's insurance and is strongly recommended but not required. Unreinforced masonry buildings carry higher seismic risk.

SAN FRANCISCO REAL ESTATE RESOURCES

SAN FRANCISCO GUIDES

SF Buyer's Guide

SF Seller's Guide

SF Listings

SF Neighborhoods

Building & Remodeling Resources

HOME INSPECTORS

Cardo Home Inspections

Ridgeway & Associates

ARCHITECTS & DESIGNERS

Butler Armsden Architects

Edmonds + Lee Architects

CONTRACTORS & BUILDERS

Jeff King & Company

Dijeau Poage Construction

STAGERS & STYLISTS

Meridith Baer Home

Stage to Sell

PERMITS & PLANNING

SF Department of Building Inspection

SF Planning Department

Stay Informed & Inspired

FREQUENTLY ASKED QUESTIONS

What is a TIC and how does it differ from a condo in San Francisco?

How does San Francisco's transfer tax work, and who pays it?

How does Proposition 13 affect property taxes when I buy in San Francisco?

What are the condo conversion rules in San Francisco?

Do San Francisco rent control rules affect homebuyers?

What pre-sale inspections are required or recommended in San Francisco?

What types of financing work for San Francisco real estate?

What should I know about seismic safety when buying in San Francisco?

CONTACT US

SAN FRANCISCO REAL ESTATE RESOURCES

SAN FRANCISCO GUIDES

SF Buyer's Guide

SF Seller's Guide

SF Listings

SF Neighborhoods

Building & Remodeling Resources

HOME INSPECTORS

Cardo Home Inspections

Ridgeway & Associates

ARCHITECTS & DESIGNERS

Butler Armsden Architects

Edmonds + Lee Architects

CONTRACTORS & BUILDERS

Jeff King & Company

Dijeau Poage Construction

STAGERS & STYLISTS

Meridith Baer Home

Stage to Sell

PERMITS & PLANNING

SF Department of Building Inspection

SF Planning Department

Stay Informed & Inspired

FREQUENTLY ASKED QUESTIONS

What is a TIC and how does it differ from a condo in San Francisco?

How does San Francisco's transfer tax work, and who pays it?

How does Proposition 13 affect property taxes when I buy in San Francisco?

What are the condo conversion rules in San Francisco?

Do San Francisco rent control rules affect homebuyers?

What pre-sale inspections are required or recommended in San Francisco?

What types of financing work for San Francisco real estate?

What should I know about seismic safety when buying in San Francisco?

CONTACT US