Cohousing-L Mailing List: RE: How do we organize to handle money?

[Sue Pniewski (SPniewski]

Tom-
It seems to me that if you folks are buying an option, but haven't really
formed a formal agreement yet, it would be smart to just put the option in
all of the names of the people putting down the money.  In order to be fair
about it you should probably require the same amount of money from each
person, who would then have an equal stake in the property.  You would need
to write up a simple agreement between yourselves, but get it notarized
anyway, agreeing that if anybody needed out, the others would buy that
person out in equal shares.  This would spread the potential risk amongst
the group.  You should probably see a laywer or at leat a good real estate
broker in any case to be sure the option is done correctly and is in your
favor.  It's possible you could get a freebie from a real estate attorney if
you consider using them for your closings.  Additionally, the agreement
between the members should be basic and clear, and should probaby have a few
legal terms in it just to protect everybody.  

I have also seen it done where one person gets the option and puts out the
cash and then is reimbursed by the rest of the group prior to development.
This is a lot more stressful in my humble opinion...

I can pass along basic forms if you need them.  


-------------------------------------
Susan Pniewski, Esq.
General Counsel
Habitat for Humanity of Jacksonville
904.798.2712  x202


-----Original Message-----
From: Tom Hammer [mailto:thammer302 [at] yahoo.com]
Sent: Monday, August 18, 2003 9:12 AM
To: cohousing-l [at] cohousing.org
Subject: [C-L]_How do we organize to handle money?



Hello all,

We are a forming community in the DE/PA/MD region, and
we have an early opportunity to put down some money to
hold some land that seems to be just right for us.

This opportunity has taken us a bit by surprise, and
we are not ready with formal agreements or
understandings about how to handle money that members
will have to put in for this purpose and others that
will soon follow.

What do you recommend other than simply seeing a
lawyer?  We can do that, but there are probably no
lawyers in this area familiar with cohousing.  Do you
have copies of your agreements you can send us, or
what do you advise?

Tom Hammer
Concord Village

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