YOUR TOWNHOME
CO-OWN ERSHIP: WHAT IT MEANS.
AN INNOVATIVE APPROACH TO HOMEOWNERSHIP THAT UNLOCKS AFFORDABILITY FOR YOU AND YOUR CO-OWNER.
Congratulations! Your decision to embark on this exciting co-ownership journey is the key to unlocking a beautiful home for you and your co-owner. Our team at SEAN. is here to simplify the process to ensure a stress-free experience. Our simple guide below will answer most of your questions, and for any others, we invite you to connect with us anytime!
1. DEFINE THE TYPE OF OWNERSHIP THAT SUITS YOU AND YOUR CO-OWNER BEST. FOR EXAMPLE, TENANTS-IN-COMMON, JOINT TENANTS OR CORPORATION.
2. ESTABLISH THE DECISION-MAKING PROCESS FOR THE PROPERTY, WHETHER BY CONSENSUS OR VOTE.
1. DESIGNATE INDOOR AND OUTDOOR SHARED SPACES AND DETERMINE WHAT USES ARE ALLOWED IN THOSE AREAS.
2. BOTH OWNERS SHOULD AGREE ON WHAT AREAS ARE FOR EACH INDIVIDUAL’S USE. OUR TEAM CAN OFFER ADVICE, IF NEEDED.
3. DISCUSS AND OUTLINE GUEST USAGE AND ACCOMMODATING POTENTIAL NEW RESIDENTS.
1. CLARIFY BOTH OWNERS’ RESPONSIBILITIES FOR THE DOWN PAYMENT, MORTGAGE PAYMENTS AND INSURANCE.
2. EACH OWNER IS RESPONSIBLE FOR PAYING THEIR SHARE OF THE PURCHASE PRICE.
3. THERE CAN ONLY BE ONE MORTGAGE ON THE PROPERTY, SO EITHER OWNER OR BOTH CAN QUALIFY FOR THE MORTGAGE. IF BOTH ARE ON THE MORTGAGE, BOTH ARE LIABLE IF ONE DOESN’T PAY THEIR MONTHLY PAYMENT. OWNERS SHOULD AGREE ON THE PENALTY.
4. IF THE CO-OWNERS PROVIDE A DOWN PAYMENT OF 20% OR MORE TOWARD THE PURCHASE PRICE, THERE IS NO MORTGAGE INSURANCE COST. IF THE DOWN PAYMENT IS LESS THAN 20%, INSURANCE COST MUST BE PAID.
5. PREPARE FOR ONGOING EXPENSES SUCH AS MORTGAGE PAYMENTS, PROPERTY TAXES, UTILITIES, CONDO FEES, MAINTENANCE, REPAIRS AND INSURANCE.
6. OUTLINE OPERATING COSTS SUCH AS HYDRO, HVAC SYSTEM RENTAL, INTERNET, CABLE AND OTHERS. BOTH OWNERS SHOULD AGREE IN ADVANCE HOW OPERATING COSTS WILL BE SHARED.
7. SPECIFY HOW PAYMENTS WILL BE MADE AND HOW INSURANCE AND OPERATING COSTS WILL BE PAID AND MAINTAINED. ESTABLISH A SEPARATE BANK ACCOUNT FOR MANAGING SHARED EXPENSES AND REGULAR CONTRIBUTIONS.
1. REVIEW THE TARION NEW HOME WARRANTY. BOTH CO-OWNERS ARE SHARING ONE WARRANTY, SO CLAIMS MUST BE SUBMITTED BY ONE OWNER ON BEHALF OF BOTH. AGREE ON WHICH OWNER WILL DO THIS.
2. TARION IS A GREAT RESOURCE FOR SEASONAL HOME MAINTENANCE TIPS. BOTH OWNERS SHOULD AGREE ON MAINTENANCE RESPONSIBILITIES, SUCH AS GARBAGE, DRIVEWAY/WALKWAY SNOW CLEARNING, LAWN MAINTENANCE AND MORE.
1. FOR NEGLIGENCE OR MISCONDUCT, BOTH OWNERS SHOULD HAVE PROVISIONS FOR SEEKING COMPENSATION FOR MISSED PAYMENTS.
2. AGREE ON DISPUTE RESOLUTION METHODS, SUCH AS MEDIATION OR ARBITRATION, AND SHARING THE COST. FOR EXAMPLE, IF A CONFLICT CANNOT BE RESOLVED, EITHER CO-OWNER CAN REQUEST AN ARBITRATOR, WHOSE DECISION IS FINAL.
3. IF ONE OWNER WANTS TO SELL THEIR SHARE OF THE PROPERTY, AN APPRAISAL MUST DETERMINE THE VALUE TO BE PAID. THE APPRAISAL SHOULD BE PAID FOR BY THE SELLER. THE NEW BUYER MUST QUALIFY FOR THE EXISTING MORTGAGE AND MUST BE APPROVED BY THE REMAINING OWNERS, UNLESS OTHERWISE AGREED UPON.
Questions? Connect With Us.
The SEAN. team is here to support your homeownership journey every step of the way. As you consider the benefits of co-ownership, feel free to connect with us if you have any further questions.
