Types of Real Estate in San Francisco

At a glance

Type	You own	Loan	Rate vs. a house	Watch for
Single Family	House + land	Conventional or jumbo	Best	Unpermitted rooms
Condo	Your unit + share of common areas	Conventional — HOA must qualify	Same, if warrantable	HOA reserves, assessments
TIC	% of the whole building	Fractional TIC loan	+0.25 to 1.0 pt	Group loan vs. fractional
Co-op	Shares + a lease	Share loan (few lenders)	Higher	Board approval
Multi-Unit	The building + tenancies	2–4: residential · 5+: commercial	Varies	Legal unit count (3R)

Single Family

One home, one lot, one owner.

No shared walls, no board, no dues.

Financing

Simplest loan — conventional, or jumbo above the county limit.
Widest lender choice, usually the best rate.

Watch for

Pull the 3R: unpermitted rooms and garage conversions are common.
Hillside lots: foundation and drainage.

Condominium

You own the unit; the HOA owns the rest.

Own deed, own tax bill, monthly dues.

Financing

The lender approves the HOA as well as you.
Non-warrantable building = higher rate, bigger down payment.

Watch for

Read the reserve study, budget and last 2 years of minutes.
An assessment voted after you close is yours to pay.

Tenancy in Common (TIC)

A share of the whole building, with one unit that is yours.

One deed, one tax bill, split by the TIC agreement.

Financing

Fractional loans: each owner has their own.
About +0.25 to 1.0 pt over a condo; bigger down payment.

Watch for

A group loan ties you to every owner's payments.
Trades 10–20% below a comparable condo.
Condo conversion is a maybe, not a plan.

Stock Cooperative

Shares in a corporation, plus a lease to your unit.

Rare in SF — a handful of older buildings.

Financing

Share loan, not a mortgage — few lenders write them.
Your monthly charge may include the building's own mortgage.

Watch for

The board must approve you — and can say no.
Stricter rules on sublets, pets and renovation. Slower resale.

Multi-Unit

2–4 units is residential. 5+ is commercial.

Tenants and their rents come with the building.

Financing

2–4 units: residential loan; living in one can lower the down payment.
5+ units: sized on the building's income, shorter terms.
Below-market rents cut how much you can borrow.

Watch for

Legal unit count — see the 3R section.
Get tenant estoppels; tenancies transfer to you.
5+ wood-frame: check soft-story retrofit status.

Before you tour

Financing, step by step

Where you are in the process decides how seriously your offer is taken.

1Pre-qualificationA lender's estimate from what you tell them. Nothing checked — not offer-ready.
2Pre-approvalCredit pulled, documents reviewed, a letter. The minimum for an offer.
3Underwritten approvalAn underwriter has cleared you; only the house is left. Closest thing to cash.
4In contractAppraisal, title, conditions list, loan documents, signing, funding, recording.

Bring: 2 years of tax returns and W-2s, recent pay stubs, 2 months of statements.
The property must qualify too: Condo: HOA review. TIC: a fractional lender. 5+ units: commercial.
Jumbo is normal here: Expect a larger down payment and cash reserves left after closing.
Rate lock: Typically 30–60 days. Lock against the real closing date.
Change nothing until you have the keys: No new credit, no job change, no unexplained deposits.

Multi-unit: read this

The 3R report and legal unit count

Never pay for a unit the city does not recognize.

What it is: DBI's record of permits and the legal number of units. About 7–10 business days.
What it is not: Not an inspection or a guarantee — it reports what city records show.
Why it matters: Illegal units: no appraisal credit, no loan, maybe no insurance, possible removal order.
Penalty: Up to 9× the permit fee for unpermitted work, plus legalizing or removing it.
Do this: Pull the 3R, walk the building against it, and price the legal count.

Before contingencies come off

The disclosure package

Often hundreds of pages. Read these first.

State forms: TDS, Seller Questionnaire, Natural Hazard report, lead paint (pre-1978).
Property file: Prelim title, 3R, pest and contractor inspections.
SF extras: Energy/water compliance, soft-story status, rent-control disclosures, HOA package.
Read in this order: HOA minutes and reserves → inspections → the rest. Every “unknown” is a question.
Get your own inspections: Disclosures show what the seller knows — not what they don't.

Week one of escrow

Insurance

No policy, no loan. Get a quote while you can still walk away.

Call an agent the day you're in contract: Give year built, roof age, panel type and wiring.
The market: Carriers are returning in 2026; premiums are still high.
Electrical panel: Federal Pacific or Zinsco: most carriers require replacement.
Knob-and-tube wiring: Common before the 1940s. Many carriers decline or add conditions.
Roof: Under 3–5 years of life left gets flagged. Ask age, material, permit.
Earthquake is separate: Not in a standard policy. Deductible is a % of the dwelling limit.
Ask for the CLUE report: 5 years of claims — old water claims are a common reason for a decline.

What you'll really pay

Property taxes

Your purchase price resets the tax base.

Rate: About 1.18% of purchase price in SF (1% base + voter-approved bonds).
Growth: Assessed value rises at most 2% a year while you own it (Prop 13).
Due dates: Nov 1 (late after Dec 10) and Feb 1 (late after Apr 10). No grace period.
Supplemental bill: Arrives months after closing, not in your impound. Set cash aside.
TIC: One bill for the building, split by the TIC agreement.

Extra line items

Mello-Roos and special districts

Special taxes sit on top of the base rate — and can rise every year.

What it is: A special tax that pays for local infrastructure. It's a lien on the property.
Where in SF: Mostly new areas: Mission Bay, Transbay, Treasure Island, Mission Rock, Hunters Point, Central SoMa, Pier 70.
Other charges: School parcel taxes and district assessments are per parcel — harder on small units.
Check three places: The Natural Hazard report, the current tax bill, and the prelim title.
Ask: How much, how fast it escalates, and the year it ends.

Not sure what you're looking at?

Send the address. I'll tell you what it is and what it costs to own.

Ask me about a property

General information for San Francisco buyers and sellers, not legal, tax or lending advice. Figures current as of September 2026 — verify with DBI, the Treasurer & Tax Collector, your lender and your attorney or CPA.