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

[Diana Carroll (dianaecarroll]

If you sell the land for enough to pay everyone back, that's not a loss. The 
question is how to divvy up a LOSS. what would you have done if you couldn't 
flip the property for enough to cover expenses?  That's what was asked. 

In our case, our project "succeeded" in the sense that our homes were built and 
we live here. But the homes weren't sold for enough to pay what we owed, so 
there was still a loss. And there was no agreement up front about how to handle 
that possibility. 

Written on a small keyboard, please forgive bizarre typos


On Mar 19, 2013, at 8:59 PM, <111rmp [at] gmail.com> wrote:

> 
> 
> 
> 
> 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.
> 
> 
> 
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