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July 23, 2009
ISO Partner in Joint Ownership
Tenancy-in-Common is a formal, legal, agreement between two or more people to jointly own a house; What I'm proposing is:
Two duplexes. Upper duplex will have 2 full baths and 2 (or 3, depending) bedrooms, 1500 sq ft. W/d in apartment. Renovated. I occupy the lower duplex which includes the garden and parlor-floor deck, I figure I can say its 55% or so; the upper duplex is therefore 45% or so. Approx $650k. Maintenance $595/mon (incl RE taxes, insurance, gas heat etc.)
If partner has 40% down, they can simply take over the existing mortgage, at present roughly $375k. Obviously all tax advantages go to the payer.
Here's the anti-sales-pitch: Tenancy-in-Common implies a higher degree of trust between the parties than a condo/co-op arrangement; also it's going to be harder to sell/get out of it. Legally, there will be a defined exit strategy (sale/right-of-first-refusal whatever) so one is protected, but still...
So: Pluses: simple/ less paperwork/ definitely getting a better deal than an equivalent co-op.
Minuses: hard to sell, partners have to get along well.
Any serious inquires? Reply to cmurthi [youknowwhat] seeinggreen.net
Comments
Hey cmu, I'd want to know if I would be sharing that garden.
I'd also want to know if I had my own heat, I hear you're a bit stingy in that regard :-)
Good luck!
Posted by: denton at July 23, 2009 5:41 PM
could work... I wissh you luck - I have thought about this myself (with my mom as the other owner in a 4 story bldg
also remember lots of questions arise?
who will take care of potential problems with the building?
if the boiler breaks and say you want to repair ot, but the other owner thinks it's a better choice to just replace it...
Posted by: gemini10 at July 23, 2009 9:14 PM
@gemini10 all of those issues are true in condos and coops too, though the difference is that there is a structure in place (condo association bylaws and power-of-attorney transferred to the condo association) to handle those decisions.
Posted by: josh59x at July 23, 2009 10:39 PM
There's a 'structure' in place in TIC's as well...it's called common sense and rationality. Yesterday I talked with one potential partner. Without going into details and on the first meeting, my instincts tell me [s]he would be all right. You have to go on the assumption that problems can be solved.
Who will take care of problems? All partners, or as with my SF TIC, I did the bookkeeping & emegencies and my partner major ones.
I'm really amazed that people START with the assumption that there will be problems...and me, the perennial pessimist, starts with the opposite assumption!
Posted by: cmu at July 24, 2009 10:29 AM
"I'm really amazed that people START with the assumption that there will be problems...and me, the perennial pessimist, starts with the opposite assumption"
cmu, that might be the essential difference between West Coast people and New Yorkers.
I wish you luck on this...let me know how it comes out.
Also, where is this building??? A brownstone?
Posted by: daveinbedstuy at July 24, 2009 11:29 AM
CMU -- Are you planning to go in with a plan to do a condo conversion in a certain time frame, or is teh only exit strategy selling through the TIC?
Also, what neighborhood or part of neighborhood?
Posted by: Boerumresident at July 27, 2009 11:24 AM
good luck with that....are you applying energy efficient and environmentally sensitive design in the renovation?
Posted by: young archi at September 2, 2009 2:30 PM
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