Cohousing-L Mailing List: Re: Involvement in Closing of Home Sales

[Julie Gallagher (jgall63]

Hi Ann,

Cantine's Island is organized as a homeowners' association, with fee simple
ownership of individual homes. The sale agreements for the homes contain
the following language:

          "Purchaser acknowledges that Purchaser has received and reviewed
a copy of Offering materials consisting of the Declaration and By-Laws of
Cantine’s Island Homeowner’s Association prior to the execution of this
Agreement. Purchaser understands and agrees that Purchaser shall
automatically become a member of the Association and be bound by the
Declaration and By-Laws, Exhibits and other provisions herein contained in
the Offering materials, all of which are incorporated herein by reference
and that Seller has made no representations with regard thereto."

Of course, our Declaration and By-Laws also state that anyone purchasing a
home automatically becomes a member of the HOA, but it seems helpful to
also have this language in the sale contract, which is the only thing the
purchaser signs.


I'm surprised that you see no reason for the sale contract to have language
about joining the community. Doesn't the home sale always include a share
of ownership of the common property, and an obligation to follow the rules
of the HOA or condo association? That's why it seems to me it should be
included in the sale contract.


Julie

On Mon, Jun 12, 2017 at 12:07 PM, Ann Zabaldo <zabaldo [at] earthlink.net> 
wrote:

>
> Hi Julie!
>
> This is a very interesting post.  What is the underlying action that is
> producing these questions?
>
> In a fee-simple or condominium sale of a unit of real estate no one has to
> be at the closing except the closing agent.  Neither the buyer or seller
> HAVE to be present.  In fact, the sale can be closed in escrow.  The buyer
> and seller have to have a telephone and a fax machine.  I’ve done this many
> times.
>
> If there are any fees due to third parties then the closing agent will
> make sure the money is disbursed to the parties.  This information has  to
> be in the contract.
>
> I cannot see a reason that a sales contract would have language regarding
> joining the community.  It might contain contingencies for joining the
> community e.g. attend x number of meetings or participate in workdays or
> something like that before the sale can proceed.
>
> PS — in fee simple ownership the owner owns both the land and the
> improvements (e.g. house.)  So a single family detached home on a 1/8 acre
> of land in which the land is also owned by the owner is feel simple
> ownership.
>
> In Condominium ownership, the owner owns some part of the building usually
> from the walls in and shares ownership of everything else.  The monthly HoA
> Dues go for paying for shared costs e.g. roof.   However, you can also have
> a Fee Simple Townhome in which the owner is responsible for EVERYTHING in
> the home both exterior and interior.
>
>
> Best --
>
> Ann Zabaldo
> Takoma Village Cohousing
> Washington, DC
> Principal, Cohousing Collaborative, LLC
> Falls Church, VA
> 202.546.4654
>
> As long as you have two or fewer … your ducks are always in a row.  The
> Covert Comic
>
>
>
> > On Jun 12, 2017, at 11:31 AM, Julie Gallagher <jgall63 [at] gmail.com> 
> > wrote:
> >
> >
> > Does a representative of your community attend the closings of home sales
> > when a current resident is selling to a new owner? If so, what is his/her
> > role? If the current owner owes a flip tax (or other term for a share of
> > profit that goes to the community), presumably a community representative
> > attends to receive the check, if paid at the closing. Anything else?
> > Related question: does the community review the sale contract to make
> sure
> > it contains appropriate language for joining the community?
> >
> > Julie Gallagher
> > Cantine's Island Cohousing
> > Saugerties, NY
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