2. Gathering professional allies

PROFESSIONAL ALLIES

Connecting with lawyers, accountants, real estate agents, banks, and mediators

One of the most common questions future co-owners have is how to find professionals who can help them set up legal and financial structures to co-buy property.

It’s especially important to find professionals with experience working with non-traditional families, both so you don’t have to endure potential discriminatory questions or comments, and also to ensure the professional you choose has the specific expertise to handle your project.

PROFESSIONAL ALLIES

Your team

In addition to a lawyer, an financial planner, a realtor and a lender, you may also consider designating an expert in group facilitation to help your group through tough decisions. This can be a member of your group, if someone has this expertise (though there can be conflicts of interest if they also have a say in the decision) or an outside facilitator or mediator.

Lawyer

to create your joint ownership structures and documents

Financial Planner

to help figure out what you can afford

Realtor

to help find your property

Lender

to coordinate a loan

Group Facilitator

to help your group through tough decisions

Lawyers

Co-ownership involves entering into contracts with significant financial commitments. Even if you plan to DIY many other aspects of your intentional community, setting up legally enforceable co-ownership structures and agreements is something you will need a lawyer for.

Lawyers traditionally have a duty of confidentiality, which means they can’t share their clients’ information with other people, and a duty to work in their client’s interest. However, lawyers traditionally only have one person as their client, not a group - because if people within the group have interests that conflict with each other (for example, one person wants the group to have veto power over new owners, and another doesn’t), the lawyer couldn’t represent both sides fairly.

If you do choose to have an attorney jointly represent your group (for example, in drawing up an co-ownership agreement or LLC document, or acting as an official mediator), it’s important to understand that the lawyer is not your personal lawyer. They’re the lawyer for your group, and will act in the interests of the whole group. If you tell your lawyer a piece of confidential information, they do not have to keep that a secret from the rest of the group. It’s recommended to put in the agreement that any member has a right to go to a separate attorney, to make it clear that the attorney is not your personal attorney but jointly representing the group.

What to ask your lawyer

Have you worked with non-married or chosen family co-buyers before?
Are you familiar with the unique legal and financial considerations for co-ownership among multiple, unrelated people?
How do you ensure all co-buyers are fairly represented in contracts and agreements?
What ownership structures or agreements do you recommend for co-buyers?
What financing options exist for multiple, unrelated buyers?
What are the tax and estate planning implications of co-owning a home together?
How should we plan for one person wanting to sell or leave the arrangement?
What legal protections can we put in place to resolve disputes or handle unexpected situations?
Are there any zoning laws, home owner’s association (HOA) rules, or other regulations that could affect our living situation?
What steps can we take to protect inheritance rights for all co-owners?

See the Resources section for referrals to lawyers with experience in co-ownership.

Financial planners and accountants

What to ask your financial planner or accountant

Have you worked with non-married or chosen family co-buyers before?
Are you familiar with the unique legal and financial considerations for co-ownership among multiple, unrelated people?
What ownership structures or agreements do you recommend for co-buyers?
How do you ensure all co-buyers are fairly represented in contracts and agreements?
What financing options exist for multiple, unrelated buyers?
What are the tax and estate planning implications of co-owning a home together?
How should we plan for one person wanting to sell or leave the arrangement?
What steps can we take to protect inheritance rights for all co-owners?

See the Resources section for referrals to financial planners with experience in co-ownership, like Hadassah Damien (above).

Real estate agents

Many people find property on their own through MLS listings or apps like Zillow, Redfin and Streeteasy. However, if you’re having trouble finding properties that fit your group’s unique criteria, real estate agents can help by showing you properties that aren’t yet on the market.

What to ask your real estate agent

Have you worked with non-married or chosen family co-buyers before?
Are you familiar with the unique legal and financial considerations for co-ownership among multiple, unrelated people?
What financing options exist for multiple, unrelated buyers?
Are there any zoning laws, HOA rules, or other regulations that could affect our living situation?

See the Resources section for referrals to real estate agents with experience in co-ownership.

Banks and lenders

It can be difficult to find a lender who has experience with multi-owner properties, because banks usually view more owners as more risk (more potential people who might fall behind on payments or default).

The hardest part is often not that lenders disapprove of your family structure, it’s that lenders don’t understand what you’re trying to do and aren’t willing to do the extra research to help out.

There are no lending rules against co-ownership; it’s just about finding someone who has the expertise and is willing to help you find the best rate.

Matt Trocker from Nestment says that if the lender doesn’t seem to understand what you’re trying to do, end the conversation. There are enough lenders who do understand co-ownership that it’s not worth spending time educating those who don’t.

What to ask your lender

Have you worked with non-married or chosen family co-buyers before?
Are you familiar with the unique legal and financial considerations for co-ownership among multiple, unrelated people?
What financing options exist for multiple, unrelated buyers?
How should we plan for one person wanting to sell or leave the arrangement?

See the Resources section for referrals to lenders with experience in co-ownership.

Mediators

Some groups have found it helpful to form a relationship with a mediator early, before problems arise, so when they needed them for help with a difficult decision, everyone trusted them and was already bought in.

What to ask your mediator

Have you worked with non-married or chosen family co-buyers before?
Are you familiar with the unique legal and financial considerations for co-ownership among multiple, unrelated people?
What financing options exist for multiple, unrelated buyers?
How should we plan for one person wanting to sell or leave the arrangement?

See the Resources section for referrals to mediators with experience in co-ownership.