Cohousing-L Mailing List: Re: Bank Lenders to Cohousing TIC

(continued)

Fern,

I find this intriguing. From what I've read here and on your website I 

understand that the property, which was rental apartments previously, 

has been purchased by your group as tenants in common. That would mean 

that each of you owns a share of the whole property, the percentage 

being specified in the title, is that right? This is different from 

condominium, where an owner has title to the specific unit plus a share 

of the common.

What's intriguing is how do you sell "homes"? TIC doesn't designate any 

specific space belonging to one owner. Each owner owns a percentage of 

the property on title for the whole of the property. I can see why no 

lender would want to lend to a member, as the member doesn't have a 

property he or she can mortgage. Placing mortgages on the whole of the 

property would be a rat's nest, and all of you would be responsible for 

each other's debts.

If you cannot convert to condominium, can you register a cooperative?

The difference is that a cooperative is a registered corporate entity, 

like a business or society. The way that's structured here in BC, the 

cooperative owns the building and members own shares in the co-op, and 

pay rent to the co-op to cover operating expenses.

Btw, I own my (condo) unit as tenant in common with another person. We 

each have 50% on title, but the unit isn't divided into 2 spaces. The 

other owner can sell her share and I would still have mine. We are both 

responsible for the mortgage, which is on the whole property. It was 

hard enough getting a mortgage for this. Why we did it is a whole other 

story.

John Carver
Pacific Gardens Cohousing Community
Nanaimo, BC
http://pacificgardens.ca/

On 20/06/2015 12:12 PM, Fern Selzer/US/CA/95003/NBC via Cohousing-L wrote:

Hi All,
We are looking for a bank that will make fractional loans to our members.    We 
created our community expecting to get fractional loans but as we were looking 
for our first loans, the bank bubble burst and all the fractional loans for 
TICs disappeared.    Now they are back, but we have not been able to find a 
bank willing to do this in Santa Cruz (CA) County.  We have a perfect payment 
history, equity in our homes, a default fund, etc.
...
Fern
New Brighton Cohousing
Aptos, CA

Re: Bank Lenders to Cohousing TIC	<– Date –> <– Thread –>
From: John Carver (jcarverislandnet.com)
Date: Sun, 21 Jun 2015 23:03:51 -0700 (PDT)