Condo, TIC, Co-Op, Townhouse, SFH — What's the Difference?
A plain-English guide to the most common ways to own a home
When most of us picture buying a home, we picture the classic version: a freestanding house with a yard, a driveway, maybe a tree out front. But in cities like San Francisco — where space is tight and the housing stock is layered with history — that's only one of several ways to become a homeowner. You'll also run into condos, townhouses, co-ops, and TICs.
So what's actually the difference between them? It matters more than you might think. The type of home you buy affects the changes you can make to it, the rules you have to follow, the fees you pay each month, and even the kind of loan you can get. Here's a straightforward breakdown so you can keep these terms straight without wading through legalese.
Single-Family Home (SFH)
What you own: Everything. The house itself, the land it sits on, the roof, the yard, the fence. There are no shared walls, no shared structures, and no shared ownership. If you can afford it, this is the most straightforward form of homeownership there is.
Fees and rules: No monthly homeowner's association dues in most cases (some newer planned developments are exceptions). No board to answer to, no neighbors voting on your paint color. The flip side: every repair, every leak, every roof replacement is yours to pay for and arrange. You have full control and responsibility.
Condo
What you own: When you buy a condo, you own the inside of your unit: the airspace, the finishes, the fixtures within your four walls, plus a percentage interest in the building's common areas like the lobby, hallways, roof, and any shared amenities. You don't own the land or the exterior of the building. Most condos share at least one wall, and often a floor or ceiling, with neighbors.
Fees and rules: A homeowners association (HOA) manages the building, and you pay a monthly fee for maintenance, insurance, and reserves. You have free rein inside your unit, but anything visible from the outside: windows, balconies, exterior paint, is governed by the HOA. Always read the HOA's rules and check its financial health before buying; a building with thin reserves can hit you with surprise special assessments later.
Tenancy in Common (TIC)
What you own: A TIC is most common in San Francisco, where city rules have long limited the conversion of multi-unit buildings into condos. Instead of buying a specific unit, you and your co-owners each buy a percentage of the entire building, say, one-third of a three-unit Victorian. A separate TIC agreement spells out who has the exclusive right to occupy which unit and how shared spaces are handled.
Fees and rules: There's no HOA, but co-owners share costs for things like the roof, shared utilities, insurance, and property taxes. Historically, TICs had a single shared mortgage, which tied your financial fate to your neighbors', but fractional financing now lets each owner carry their own loan. TICs typically sell for less than comparable condos, which is the main draw. The trade-off is more complexity: fewer lenders, slightly higher rates, and an agreement you should review carefully with an experienced attorney.
Townhouse
What you own: A townhouse is a multi-story attached home, usually with its own front door and often a small yard or garage. In most cases, you own both the structure and the land underneath it. You'll likely share walls with neighbors on either side, but never above or below, and the roof over your head is yours.
Fees and rules: Many townhouses are part of a planned community with an HOA that maintains shared landscaping or amenities, and you'll pay monthly dues accordingly. Unlike with a condo, you generally have more freedom over your exterior and yard, but the HOA may still set rules on paint colors, fencing, and landscaping. One important note: in some markets, "townhouse" describes the architecture but not the legal structure — the property could technically be a condo or even a TIC. Always confirm what you're actually buying.
Co-Op
What you own: This one's the curveball. With a co-op, you're not buying real estate at all — you're buying shares in a corporation that owns the building. Those shares come with a proprietary lease that gives you the right to occupy a specific unit. Co-ops are common in New York and show up occasionally in San Francisco, particularly in older Nob Hill and Pacific Heights buildings.
Fees and rules: Co-op boards are famously selective. You'll submit a thick application package and sit through an interview, and the board can reject you for almost any reason. Once you're in, you'll pay a monthly fee that typically includes maintenance plus your share of the building's underlying mortgage and property taxes — which is why co-op fees are often higher than condo dues. Subletting is usually restricted, and rules can be strict on everything from renovations to noise.
Which one is right for you?
There's no single best answer, only the structure that fits your budget, your timeline, and your appetite for shared ownership. A condo or single-family home is the simplest path; a TIC can stretch your buying power; a co-op rewards long-term residents in the right building; a townhouse splits the difference between attached and detached living.
If you're not sure where you fit, that's exactly the kind of conversation worth having before you fall in love with a listing. Reach out anytime — I'm happy to walk you through the options.
