Most buildings are sold as a package deal, even if they're a collection of individual units (the modal SF residential building is a stack of 3-4 units, each with 3-5 bedrooms). A TIC conversion is a contract between co-owners that allows units to be individually bought and sold. Why this is useful: [[Buying multifamily and selling TICs is a 35 percent arbitrage opportunity]]. #### Why does this exist? They're a legal approximation of a condo conversion, which also allows units to be bought and sold individually. However, condo conversions invalidate rent controls. Therefore, unsurprisingly, SF has a moratorium on condo conversions. #### What's involved? For 2-4 unit buildings, a TIC conversion is a $2,500 boilerplate contract that a TIC lawyer can whip up in a weekend. For 5+ unit buildings, a TIC conversion requires a much more extensive legal and environmental review - on the order of tens of thousands and 6+ months.