The Difference Between a “Condo” and a “TIC” (Tenancy in Common) in Seattle
The Difference Between a "Condo" and a "TIC" (Tenancy in Common) in Seattle
Townhome. Condo. Tenancy in common. You've probably heard of two of these. Knowing the difference is what actually narrows your search to what you want.
What to Know About Condo, Townhome, and TIC Ownership
- A condo means you own a specific, legally defined unit plus an undivided interest in the shared common areas. Your unit is separately titled and financed.
- A townhome is usually its own fee-simple property on its own legal lot, often sharing a wall, sometimes with an HOA for shared elements.
- A TIC (tenancy in common) means you and your co-owners each hold an undivided fractional interest in the whole property, not a separately deeded unit, which changes financing and resale.
- Knowing the difference upfront narrows your search fast, and that matters more right now with inventory up and buyers finally getting some room to breathe.
Townhome. Condo. Tenancy in common. Two of these I am sure you've heard of. Whether or not you know the difference between any of them is another story. I know I didn't know much before I bought a condo, then a townhome, then a single-family home. And I certainly still didn't fully understand TIC until I had to explain it to a client.
Let me educate you now, so you can help an agent like me narrow the search to what you really want to see. Once you know what you want, it makes it a lot easier to get what you need.
Why This Distinction Actually Matters to Your Search
I have buyers right now who are self-proclaimed "condo people" (some looking for a primary residence, others exploring a South Lake Union condo investment). I have another client who currently owns a condo and wants a townhome. I have a potential third client who knows they don't want a condo, but a small single-family home. The good news is there's something out there for everyone. Knowing which of these three you're actually looking for, before we start touring, saves you from wasting weekends on the wrong showings.
What a Condo Actually Is
A condo means you own a specific, legally defined unit, full stop. That ownership comes with an undivided interest in the building's shared common areas: the lobby, the roof, the elevators, the landscaping, whatever the building has. Your unit is separately titled, which means it can be individually financed with a standard mortgage, and it can be individually sold without needing sign-off from every other owner in the building.
A condo association, governed by its CC&Rs and reserve study, handles the shared maintenance, and you pay monthly dues for that. What you're buying is straightforward in a legal sense, even if the building's financial health takes real homework to evaluate.
Where a Townhome Fits In
A townhome sits in its own category. It's typically its own separately platted, fee-simple property, meaning it sits on its own legal lot even though it often shares a wall with the unit next door. Some townhome communities have a homeowners association that covers shared elements like landscaping or a shared roofline, but the ownership structure itself is closer to a single-family home than to a condo.
This is why I have a client who already owns a condo and specifically wants to move to a townhome. They want their own lot and less shared building infrastructure, without taking on the yard maintenance of a full single-family home. That's a legitimate, common trade-off.
Weighing a Condo Purchase in Seattle?
I've broken down the top buildings and what to check before you buy in a separate guide.
Read: Best Luxury Condos in SeattleWhat a Tenancy in Common Actually Is, and Why It's Different
Here's the one most buyers have never heard of. Tenancy in common, or TIC, means you and your co-owners each hold an undivided fractional interest in the entire property, rather than a separately deeded unit. There's no individual legal parcel with your name on just your slice. Everyone on title owns a share of the whole thing.
That structure changes two things buyers care about most: financing and resale. Most conventional lenders are built around financing one deeded unit, which is exactly what makes a condo straightforward. A TIC interest doesn't fit that mold as cleanly. Financing sometimes means a group loan where every co-owner shares liability for the whole debt, or a specialty fractional loan product where a lender offers one, which is less common and not universally available. Resale can also be slower and more complicated, since you're generally selling an interest in a shared whole rather than a standalone unit, and major decisions about the property typically require agreement among all the co-owners.
What you actually hold title to.
- Condo: A separately deeded unit, plus an undivided interest in shared common areas. Individually financed and sold.
- Townhome: A fee-simple property on its own legal lot, often sharing a wall, sometimes with a limited HOA.
- TIC: An undivided fractional interest in the whole property, shared with co-owners. No individual legal parcel.
I've had buyers come to me knowing exactly which one they want, and I've had buyers who used all three terms interchangeably before we sat down. Neither is a problem. That's literally what I'm here for.
The condo people usually know they want low-maintenance living and are fine sharing a building. The client who owns a condo and wants a townhome usually wants their own front door and less shared infrastructure, without a full yard to maintain. And the buyer who knows they want a small single-family home usually just wants full control, land included, and no HOA telling them what color to paint the trim.
What I would say about TIC specifically is this: it's not common in our market compared to a straight condo purchase, and when it does come up, it deserves extra scrutiny on financing before you get attached to the property.
If a listing is described as a TIC, ask upfront how financing actually works for that specific property before you fall for it. Confirm whether it's a group loan, an individual fractional loan, or something else, and get that answer in writing from a lender, not just from the listing agent.
What's Happening in the Seattle Market Right Now
Rates are elevated right now, sitting in the mid-to-high 6% range rather than the lows we saw earlier this year. According to the Washington Center for Real Estate Research, rates averaged over 6.5% across the NWMLS service area in July 2026, and Freddie Mac's Primary Mortgage Market Survey (PMMS) national survey put the 30-year fixed at 6.66% in its most recent reading available as of this writing.
What's genuinely notable is inventory. According to NWMLS's July 2026 Market Snapshot, King County active listings grew 23.7% year-over-year, from 6,337 to 7,836 homes on the market, while closed sales dropped 11.9% year-over-year. That's more selection and less competition than buyers have had in a while, even if it's not yet the fully balanced market by traditional supply measures.
Figures per NWMLS's July 2026 Market Snapshot. Mortgage rate figures per Freddie Mac PMMS, most recent reading available as of this writing, and the Washington Center for Real Estate Research's July 2026 commentary.
Here's what I'd say about that to any buyer sitting on the fence. This is more room to breathe than you've had in a while, whether you're a condo person, a townhome person, or holding out for a small single-family home. That's my read on it, and I'll own that as my opinion, not a guarantee about where the market goes next.
A condo is a deeded unit plus shared common areas. A townhome is its own fee-simple lot, often sharing a wall. A TIC is an undivided fractional interest in a shared whole, with real financing and resale trade-offs. Know which one you actually want before you start touring, and you'll save yourself a lot of wasted weekends.
Frequently Asked Questions
What is the difference between a condo and a tenancy in common (TIC)?
A condo means you own a specific, legally defined unit outright along with an undivided interest in the building's shared common areas, and your unit can be individually financed and titled. A TIC means you and your co-owners each hold an undivided fractional interest in the entire property rather than a separately deeded unit, which typically makes financing and resale more complicated.
Is a TIC harder to finance than a condo in Seattle?
Generally, yes. Most conventional lenders are set up to finance a single deeded unit, which is straightforward with a condo. A TIC interest is not a separately titled property, so financing options are more limited, sometimes requiring a group loan where all co-owners share liability, or a specialty fractional loan product where available.
What is a townhome, and how is it different from a condo?
A townhome is typically its own separately platted, fee-simple property, often sharing a wall with a neighboring unit but sitting on its own legal lot, sometimes with a homeowners association for shared elements like landscaping. A condo, by contrast, is a legally defined unit inside a larger building or complex where you also hold an undivided interest in the shared common areas.
Are Seattle-area mortgage rates close to 7% right now?
Not quite, as of this writing. Freddie Mac's most recent national survey put the 30-year fixed rate at 6.66% in late August 2026, and the Washington Center for Real Estate Research reported rates averaging over 6.5% during July 2026 across the NWMLS service area. Rates are elevated compared to the lows earlier in 2026, but they have not reached 7%.
Is Seattle a buyer's market right now?
Conditions are shifting in buyers' favor but have not fully flipped. According to NWMLS's July 2026 Market Snapshot, King County active listings rose 23.7% year-over-year to 7,836 homes and closed sales fell 11.9% year-over-year, giving buyers more selection and less competition than a year ago. That is a meaningful shift toward balance, though it is not the same as a confirmed buyer's market by traditional months-of-supply measures.
Not Sure Which Ownership Type Fits What You Want?
Let's talk through condo, townhome, or single-family, and narrow your search to what actually fits. I'll meet you exactly where you are in the process.
Talk to Aaron
