Cohousing-L Mailing List: Re: Participation Agreements--an example

[Joani Blank (joani]

Hi Susan,

[Just decided to post this to coho-l too on the assumptions that you are
not the only one with these questions]

>1.  At what point in the "new member" process is this document signed? 

In the case of Doyle Street, I was asked to sign an earlier version of this
when I became a full member of the group.  In my case, I signed the sales
contract at my first meeting! So everything happened at once. It was only
three months before move-in when I arrived.  But anyhow, at that time,
signing the participation agreement (although it didn't refer to the CC and
R's, bylaws, etc. as I recall, because we weren't a Homeowners' Association
yet) was a requirement of becoming a member. Now, whenever there is a
resale the seller asks the buyer to sign it. I am proposing that we at Old
Oakland Cohousing adopt a similar agreement. If the group consents to it I
imagine that most people will sign it, but who knows......which leads to
the answer to your other question.....
>
>2.  When you say " (Signing of this Participation Agreement is
>>voluntary)", how does that work exactly? 

Making it voluntary later was related to the fact that legally, in the
event of a resale, neither the HOA, nor anyone else can restrict my right
to rent or sell my unit to anyone I want to.  In other words, it is an
abridgment of my rights as a seller to require me to sell only to a buyer
who "agrees to participate."

>Do most members sign it anyway?

Yes.

>What effect would it have on the community if they don't?

Probably little or none on the assumption that the few who don't sign are
likely to be participators anyway, just are people who don't like to sign
stuff like this unless they have to.

The only instance I've heard of where someone who wanted nothing to do with
the community aspects of the cohousing moved into a cohousing community is
the case of a resident dying and his or her heirs either move in themselves
or sell the house to anyone who'll buy it without regard to the community.
Of course, even if a participation agreement like this were mandatory, it
is very unlikely (in this non-lawyer's opinion) that it would be binding on
the person's heirs.

Joani
Old Oakland Cohousing at Swan's Market