Re: Options [was the concept of cohousing v. actual cohousing]
From: Sharon Villines (
Date: Sat, 13 Feb 2010 09:08:24 -0800 (PST)

On Feb 13, 2010, at 11:58 AM, Jessie Kome wrote:

At Eastern Village, our developer held an option on our property for a brief period while we signed up enough members (money on the table) so that the lender would agree to issue the developer the construction financing.

A good info from jessie which reminds me of a practice that would have helped early cohousing communities as well.

Our developer had a contract on the land but did not pay for it up front. He contracted to pay for it when the sales were closed -- when he actually had the money. This avoided huge interest payments on the loan or tying money until he finished the project.

Completion of construction was delayed and he paid penalties for each month that sales weren't completed.

This was a contract and not an option but options can have conditions like this. A seller may ask for payment to hold an option on land for a longer period or in a hot market.

In contracting it really pays to understand the kinds of things that have been or could be negotiated. That's why a real estate lawyer and/ or a commercial real estate broker can be worth their weight in gold.

Sharon Villines
Takoma Village Cohousing, Washington DC

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