Is Co-Ownership Buying Coming to Niagara

Has The Time Come for Niagara Residents?

With prices in Niagara soaring, the prospect of home ownership is slipping away for some local residents. So the time has come for some to embrace the concept of co-ownership. Co-ownership is not a new idea as it is being employed in BC and in Toronto, as well as in parts of the U.S, in cities like San Francisco. Basically co-ownership is being utilized in urban areas where home prices are out of reach.

Who It is Basically Suited for?

First-Time Buyers: Co-ownership can help first-time buyers get started in owning a home. It can also be a great way to build equity and buy a home of one’s own down the road. A good rule of thumb is to own the home for a minimum of five years to allow the equity to grow.

Seniors:  It can also help seniors who don’t want to live alone. They could sell their homes and use the profits to buy into a joint ownership with one or more like-minded people. This helps to create a sense of security and community for each.

What is Co-Ownership?

Co-ownership is an arrangement in which two of more people purchase a home thereby owning and living together by way of a legally well defined co-ownership agreement agreeable to all concerned. The concept further opens the door to greater affordability and choice, as well as access to more neighbourhoods.

What Does Co-Ownership Look Like?

Living together can take the form of a single family home with a shared kitchen and livingroom, along with each bedroom having a private ensuite bathroom. It can be two or more separate suites, such an existing legal duplex or triplex. Alternatively a home with an accessory apartment might also qualify. Co-ownership lends itself to flexibility in form of housing.

How Can One Take Title to the Home?

A co-ownership contract would involve taking title to a property as tenants in common as opposed to joint tenants. Under this arrangement each owner’s share in the property is part of their estate. Typically co-owners can have equal ownership shares on the title. They can also agree to different levels of ownership. Decision-making can therefore be equal or varied based on the ownership level or by agreement.

What About the Co-Ownership Agreement?

A co-ownership agreement gives each party clear, shared responsibilities and rights. It also protects against any disputes. It speaks to the mortgage, tax and insurance payments and to time and financial commitments required. The contract also speaks to rules for misconduct, any breach of contract, negligence or misuse of money and dispute resolution, plus much more. For more information, Google Ontario.ca co-ownership contract.