Tenants in Common (TIC) in Los Angeles – The Escrow Process

Tenants-in-Common (TIC) in Los Angeles with exclusive usage rights is a new concept for us here. Many buyers and buyer’s agents are not familiar with TIC sales. Because of that, The Rental Girl TIC Sales Team has put together a short guide on what both you and your agent should expect during escrow. The escrow process will be very similar to a condo transaction, but there are a few differences.

First, a little background about our involvement in Tenants-in-common (TIC) in Los Angeles.
Our team got introduced to TIC sales in Los Angeles in 2016 when we sold the first TIC building (in recent years) in the Silver Lake neighborhood. At that point, there were a handful of other TIC buildings sprinkled throughout Los Angeles from previous years. But it wasn’t until Sterling started offering their TIC fractional loan program here in LA in 2016 that we really started to see this market take off. Since then, The Rental Girl TIC Sales Team has brought over 50 TIC units to the market, and the market is growing rapidly.

We’ve learned a lot since our first TIC sales in Silver Lake. We’re eager to share our knowledge with other agents, and passionate about getting folks into homeownership.

Don’t get scared!!

By the end of this guide, you’re probably going to think “Wow. That’s a lot of work.” You’re probably going to think that sticking to renting would be a lot easier.

It is.

To purchase real estate (and any real estate, not just TIC), is a lot of work.

There is pre-planning and saving and then searching for the right home, in the right neighborhood, in the right price point. Then you find the home and open escrow. And now this. Yes, this process is going to be a part time job. But in the end you are a homeowner, building equity with each mortgage payment, and one step further towards your goals.

We hope that you can see how the reward of homeownership outweighs the hassle of the home buying process. This process will take about a month, and the benefits could last a lifetime.  

Enjoy!

ACCEPTANCE/OPENING ESCROW

Once your offer is accepted, be in communication with your loan officer (LO) daily. Each day you delay getting documents to the LO will delay your loan approval, which will delay close of escrow.

OPEN ESCROW TIMELINE

• Offer Accepted.
  Offer & counters fully executed, confirmation of acceptance initialed.

• TRG Team sends all parties an Open Escrow introduction email, with executed offer package attached.
  Escrow, title, lender, buyer agent & listing agents, transaction coordinators are all cc’d.
• Shortly after this email is sent, you will receive wire instructions from escrow to wire your EMD.
• Within a few days, you will receive escrow instructions from escrow, pre-lim, NHD, and all other necessary escrow paperwork
• TRG Team sends Seller Disclosures to buyer via email:
  ***We normally send this on day one, but occasionally it arrives within the first week.
  1. Seller’s CAR disclosures & CAR disclosure addendum (if any)
  2. Seller reports & paid invoices (if any)
  3. TIC Agreement & Declaration, and HOA set up documents

THE LOAN PROCESS

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