Cohousing-L Mailing List: Agreements to reshare financial burden (was: Per Household or per person?)

[111rmp (111rmp]

R Philip Dowds said: 

>Most cohousing attempts fail or take major detours before they are
consummated; money invested in the fruitless efforts -- purchase options,
attorneys, architects, etc -- is lost irrevocably.  So I need to ask ...
what agreements >did you have, if any, to re-share the financial burden if
your project failed?  (Perish, of course, the thought.)

> 

>RPD

 

Until construction was complete, we had an agreement to sell off the
property and divide up the proceeds if the project failed.  The specific
statement in our "Public Offering Statement" said: 

 

"Notice of Use of Deposit Funds for Construction.

The Deposit made at the time of the signing of the Purchase and Sale
Agreement by the Purchaser of a unit will be used to pay for the
construction of the condominium (infrastructure and buildings). By signing
the Purchase and Sale Agreement the Purchaser gives the Declarant permission
to use said deposit for such purposes. In the event that a deposit has been
used to pay for the construction of the condominium and the Declarant . does
not complete the construction of the condominium and does not convey the
unit promised to the Purchaser in the Purchase & Sales Agreement then
Purchaser will be repaid all or a portion of said deposit according to the
following terms: 

- The Declarant's property (including unsold Units and any rights the
Declarant has to convert part of the condominium property to additional
Units) will be sold and all outstanding bills will be paid.

- If there are remaining assets after sale of the property and payment of
bills, the remaining financial assets will be divided according to the
percentage that an individual or entity has contributed to the Project."

 

Thankfully that didn't happen!  

-Richard

----------------------------

Richard Pendleton

Nubanusit Neighborhood & Farm

http://www.peterboroughcohousing.org <http://www.peterboroughcohousing.org/>


An old fashioned neighborhood in a new way.