Cohousing-L Mailing List: legal advice

[Liz Ryan Cole (lizryancole]

Dear Jerry (and all developing communities) - 

Please get a local lawyer!  Find someone (or a firm) who/that specializes in 
land use and business organizations.  You need tax expertise as well as land 
use expertise to understand the variety of options available to you.  There are 
many issues that are similar or even identical from state to state and others 
that have local twists.  Do not just assume you will want to be organized as a 
condominium (though it is a common form of ownership/organization).

If you would like me to help you find a lawyer in Wisconsin please contact me 
directly and I can help you develop a list of what you might be looking for, 
how to use local bar associations, etc. to find the sort of expertise that will 
save you time and money in the long run.

liz

Liz Ryan Cole
Professor
Vermont Law School 

but also one of the burning souls with Pinnacle Cohousing, Lyme, NH.  

lizryancole [at] me.com



On Jun 16, 2015, at 2:46 PM, Lucy Beck wrote:


Dear Jerry:  The lawyer does not have to have cohousing experience - this
is a question where your State statutes governing HOA's have to apply. As
far as the state is concerned you are going to be a HOA which is something
they have tax and regulatory rules for.   In Vermont, our documents
specified the percentage of sales at which we needed to transfer ownership
from the LLC to the HOA.

Each owner owns an equal percentage of the common land.

A practical question is actually what purpose would there be for having an
LLC own the remaining commonly owned property, rather than the HOA.  You
could in the future, be in the situation where (we are) new owners are not
members of the original LLC, and a smaller percentage of the owners has the
burden of the taxes and maintenance of the common land.  When there is a
lot of rural land (we have about 115 acres in common), this is a sticky
biggie.
Lucy Beck
Champlain Valley Cohousing
Charlotte VT


> 
> 
> 
> ---------- Forwarded message ----------
> From: Jerry McIntire <jerry.mcintire [at] gmail.com>
> To: Cohousing-L <cohousing-l [at] cohousing.org>
> Cc:
> Date: Mon, 15 Jun 2015 16:55:24 -0500
> Subject: [C-L]_ Legal structure for ownership of common facilities
> We've started talking with attorneys as we plan for development and I was
> asked this question:
> 
> Will the LLC continue to exist after selling the individual lots, retaining
> ownership of the common elements? I have assumed it would not, that it
> would dissolve and the HOA would own the common land and facilities, with
> each of the lot owners being part of the HOA.
> 
> Where does ownership of the common elements reside? Does each lot owner own
> a percentage, and the HOA simply manages, or does the HOA hold ownership?
> 
> Perhaps these questions will be answered if we find an experienced
> attorney. Does anyone know of an attorney with cohousing experience who is
> licensed to practice in Wisconsin?
> 
> Thanks,
> 
> Jerry
> 
> 
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