Cohousing-L Mailing List: Re: TIC financing in California

[Judy C (cantwelldemacz]

P

On Wed., Aug. 21, 2024, 07:20 Sharon Villines via Cohousing-L, <
cohousing-l [at] cohousing.org> wrote:

> On Aug 21, 2024, at 2:09 AM, fernselzer--- via Cohousing-L <
> cohousing-l [at] cohousing.org> wrote:
> >
> > Hi folksDo any cohousing communities in California have a TIC?   If so,
> where do you get your mortgages?
>
> I had to look this up so I’m sharing:
>
> > What is a TIC loan?
>
> > A Tenancy in Common (“TIC”) is a legal way of holding an undivided
> interest in real property, or more simply, allowing for a multi-unit
> building to be owned by multiple parties. With TIC agreements and
> financing, each party has exclusive use and ownership of their unit.
>
> In the East this is called a cooperative, a form of ownership that
> predated condominiums. In a coop, each person owns a percentage interest in
> exchange for residing in an apartment. Banks don’t like them because owners
> can’t just sell their units. The Coop owns everything jointly and has a
> reputation of being difficult in choosing a new owner.
>
> Wouldn’t the mortgage be held by the organization? Are you incorporated?
> Some people have discussed mortgages co signed by each owner but the loan
> is to the corporation.
>
> As I understand it, this form of ownership began with the big mansions in
> New York City. The owners of the building sort of took in partners who were
> necessary to continue to support the buildings. They were divided in
> various ways into apartments, or suites.
>
> Sharon
> ----
> Sharon Villines
> Takoma Village Cohousing, Washington DC
> http://www.takomavillage.org
>
>
>
>
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