There is a broad spectrum of co-purchasing relationships. You and your potential co-purchasers get to decide where you fit on that spectrum, and develop your own shared goals for your home. You might be entering into this process with friends or family members, or with complete strangers.

No matter the intimacy of your existing relationships, it is beneficial to take a step back and reflect on your own expectations for co-purchasing, and to take this opportunity to articulate these expectations clearly with your potential co-purchasers. Identifying incompatibilities in your vision—even with good friends or family—will only help you in the long run.

As you begin to form your purchasing group, we encourage you to consider what your own ideal model for your shared home might be. You may want to share everything except bedrooms, living cooperatively in common spaces, or you may simply want to split up space and create individual private units, gaining equity from a portion of a building. It can be helpful to think about cooperative living models along a spectrum of shared space, activities, and assets. Imagine a series of private units on one end and a fully integrated home on the other.

1. Reflect on Your Co-ownership Preferences

Why are you considering cooperative living?

Example: I want to live in an intentional community, surrounded by like-minded people while also securing a safe and welcoming shelter and building my equity.

Who do you want to live with? Why?

Example: I want to live with eco-conscious people. I want to be able to create a garden and mind our carbon footprint while being able to enjoy organic produce. I want to be sustainable and be surrounded by others who share my passion for the environment.

What kinds of things are you hoping to share as a household? What do you want to do together?

Example: Cooking and gardening would be ideal. I want to be able to socialise over meals and share our company with our love of food. Sharing a kitchen and living area is fine. I prefer a private bathroom and bedroom.

Do you have any needs that you think cooperative living will solve?

Example: I really want to be around people with a passion for sustainability. It’s more difficult to reduce your impact when you’re on your own. I also love company and sharing the burden of financials.

What can’t you live without?

Example: I can’t live without my garden. I love growing fruit, vegetables and herbs that I can use in my cooking!

What questions do you have about living together that you would like to bring up with your co-purchasing group?

Example: What happens if something drastic in life changes? How will the household respond to individual needs and circumstances? What furniture and appliances are people interested in bringing?

Decide on Your Personal Wants and Dreams

In order to find compatible co-purchasers, it’s important to first explore your own expectations of your potential co-ownership real estate purchase and future home. The aim is to generate a basic outline of your needs and wants and dreams across a variety of criteria. Fill out any that apply and add your own. Get creative and be as detailed as you can. This is the space of brainstorming and possibility, and you can consider this a sketch of your ideal home.

    
                My
            
                Needs
            
                Wants
            
                Dreams
            
                Budget
            
                Down Payment
            
                Monthly Payments
            
                Utilities
            
                Desired Equity
            
                Other
            
                Location
            
                Neighbourhood Range
            
                        Neighbourhood Character
                    
                Public transport access
            
                Walkability
            
                School board areas
            
                Other

Once you’ve completed this exercise, get ready to get creative about co-ownership!

Looking for Co-Owners?

Try Our Matchmaking Service!

How Do You Establish Your Purchasing Group?

Click on the sections below to learrn more.

Introduction to Finding Your Purchase Group
What Do You Want?
Getting Creative with Co-Ownership
How To Find Your Group
Sketching Your Ideal Home
Summary & Next Steps

What are all the Steps to Becoming a Co-owner?

Click on the links below for all the blog articles related to each step.

“Spaces and homes can be changed, but goodwill
and family relationships are precious. Anyone thinking about co-ownership in real estate should consult a lawyer
about legacy planning before buying anything.”

— Lesli Gaynor, Partner GOCO

Other posts from The Ultimate Guide to Co-Ownership

Featured

Step Five

Finding Your Property: Are You Ready To Buy?

Step Five

Now that you’ve made it this far, let’s talk about what happens when you find a property that you like and that fits your group. Again, the market is competitive so you and your group have to be ready to act fast.

Step Five

Finding Your Property: Let's Talk About Homes and Renovations

Step Five

As we said at the beginning of this step, the real estate market is a seller’s market most of the time. In the GTA, that isn’t looking to change any time soon. While there are a lot of different types of properties that your group can look at, you should always keep in mind that supply is limited.

Step Five

Finding Your Property: Your Home Brief

Step Five

Building on your understanding of the needs and wants of each group member, you can begin to create a list of criteria that you are looking for in your co-owned real estate purchase. This Home Brief will help your agent’s guide to finding you a property.

Step Five

Finding Your Property: Setting Yourself Up For Success

Step Five

The final step in a co-ownership real estate purchase is to find the perfect property for your group! This step is last because all of the preparation you and your group have done will make this step much easier. So once you are comfortable with your Group Agreement and have worked through your Legal Agreement and budget, you are finally ready to consider properties.

Step Five

Step Four

Making Your Legal Agreement: Finding a Lawyer and Frequently Asked Questions

Step Four

Once you have done the work of determining your legal rights and responsibilities, financial obligations, and future scenarios as a group, we recommend finding a lawyer who has some experience drafting co-ownership agreements. It is essential that your agreement is created with all members of your purchasing group and the contents of any wills or spousal agreements are shared with your lawyer as they prepare your group’s Legal Agreement, so that they align.

Step Four

Making Your Legal Agreement: Future Scenarios

Step Four

It is impossible to anticipate all future change, and you or members of your group might find yourself in a position of wanting to exit your co-purchasing arrangement. Members of your purchasing group must be in agreement about how and when your property will be divested (disposed of, sold etc.).

Step Four

Making Your Legal Agreement: Financial Obligations

Step Four

We recommend that you include a schedule for mortgage payments and a clear delineation of other payments, like bills and taxes, in your Legal Agreement.

Step Four

Making Your Legal Agreement: Rights and Responsibilities

Step Four

Over the next three sections, we will be covering the three important features to include in your legal agreement. Starting now with Rights and Responsibilities!

Step Four

Making Your Legal Agreement: Types of Legal Arrangements

Step Four

Generally, there are two types of legal relationships between co-owners: you can buy property as either tenants-in-common or as joint tenants.

Step Four

Making Your Legal Agreement: Introduction

Step Four

Your legal agreement is an essential part of the co-ownership real estate purchase. It may feel daunting or uncomfortable to discuss certain aspects of your living arrangement through the lens of a legal agreement, but your Legal Agreement is in place to protect you and your group, both individually and collectively.

Step Four

Step Three

Creating Your Group Agreement: Group Agreement Case Studies

Step Three

Finally let’s finish up with some case studies to summarise Step 3 before moving on to Step 4: Creating Your Legal Agreement.

Step Three

Creating Your Group Agreement: Conflict Resolution

Step Three

Conflict resolution is an important aspect of co-ownership and collective functioning. Find out the best ways to get through these situations.

Step Three

Creating Your Group Agreement: Communication Is Essential

Step Three

Communication is an essential part of a co-ownership agreement. Your group needs to open and honest as well as regular in your frequency when it comes to house meetings and general communication.

Step Three

Creating Your Group Agreement: Collective Decision Making

Step Three

There are many models and resources for collective decision making, and we recommend that you determine a decision-making structure with your group early on.

Step Three

Creating Your Group Agreement: Identifying Your Shared Goals

Step Three

It’s important to harmonise and identify your group’s shared goals. This will build the foundation for your group agreement.

Step Three

Creating Your Group Agreement: Getting Started

Step Three

It’s time to look at how your group is going to function when living in a co-ownership arrangement.

Step Three

Step Two

Building Your Financial Model: Summary & Next Steps

Step Two

Summarize Step 2 and take a look at the final parts to make sure you’re ready for Step 3!

Step Two

Building Your Financial Model: Combine-Leverage-Split

Step Two

Finally, the last piece of your financial puzzle is to assess your ongoing costs using the Combine-Leverage-Split method!

Step Two

Building Your Financial Model: Creating Your Budget

Step Two

It’s Budget Time! Check out the example of the McGill group and create your group budget together!

Step Two

Building Your Financial Model: Get Your Financial Profile Ready!

Step Two

It’s time to get your finances together and create your financial profile! Get together with your group and create a group outline to figure out your buying power!

Step Two

Building Your Financial Model: Who Will Lend To You?

Step Two

Now that you’ve completed your crash course on mortgages, it’s time to move on to who will lend to you and how will you convince them to lend to your group.

Step Two

Building Your Financial Model: What's In A Mortgage?

Step Two

Mortgages can be complicated. Co-ownership can make the process even more complicated. While it is helpful to have a working knowledge of the basics on mortgages, we’ve compiled a quick crash course aimed at co-ownership.

Step Two

Building Your Financial Model: Introduction

Step Two

Now that you’ve got your group together and you’ve decided that you would be a good fit, it’s time to get real about everyone’s financials.

Step Two

Step One

Finding Your Purchase Group: Summary And Next Steps

Step One

That’s all of step one and finding your purchasing group for co-ownership. This step can take a lot of time depending on a number of factors but, as it is the first step, it’s one of the most important. You need to work hard and dig deep to solidify your purchasing group and ensure the success of your co-ownership purchase.

Step One

Finding Your Purchase Group: Sketching Your Ideal Home Together

Step One

Now that you have a clearer sense of your own needs, wants, and dreams in co-purchasing a home, and you’ve found a group of people that share your vision of co-ownership, you can assess and discuss your compatibility with your co-purchasing group. The more detailed and clear your ideas are, the easier they will be to convey to others.

Step One

Finding Your Purchase Group: How To Find Your Group

Step One

There are many ways to form a purchasing group for co-ownership purposes. While co-ownership is still relatively new, there are plenty of services that are available to you even if you are a single buyer looking for a group.

Step One

Finding Your Purchase Group: Getting Creative About Cooperative Living

Step One

There is a broad spectrum of co-purchasing relationships. You and your potential co-purchasers get to decide where you fit on that spectrum, and develop your own shared goals for your home. You might be entering into this process with friends or family members, or with complete strangers.

Step One

Finding Your Purchase Group: What Do You Want?

Step One

Finding Your Purchase Group: Introduction

Step One

Co-purchasing is a significant commitment that can have high stakes. You and your group will jointly manage what may be your most important asset, and this project must be undertaken with care and planning to be successful. Every group is different and you will develop your own models and methods to facilitate the functioning of your home.

Step One

Intro to Co-ownership

The Single Moms Merger

Intro to Co-ownership

With good planning, your co-ownership purchase can be a profound and rewarding experience. The following are 3 entries are studies from groups who co-purchased their homes. While not all of these groups remain together, their stories demonstrate the importance of preparation and following the 5 Steps. Check out how Two Mothers fared in this case study example!

Intro to Co-ownership

There is a broad spectrum of co-purchasing relationships. You and your potential co-purchasers get to decide where you fit on that spectrum, and develop your own shared goals for your home. You might be entering into this process with friends or family members, or with complete strangers.

1. Reflect on Your Co-ownership Preferences

Decide on Your Personal Wants and Dreams

Looking for Co-Owners?

Try Our Matchmaking Service!

How Do You Establish Your Purchasing Group?

What are all the Steps to Becoming a Co-owner?

Other posts from The Ultimate Guide to Co-Ownership

Lesli Gaynor gaynor.lesli@gmail.com