lunes, 03 de agosto de 2020
Buying a house through a cooperative
Buying a house through a cooperative is usually a useful and cheaper way than doing it on the free market since expenses are usually less. Several people come together to form a cooperative that buys land, hires a construction company, and builds a residential building.
How does a housing cooperative work?
Let,s talk about the cooperative housing concept. By definition, a housing cooperative is nothing more than an association in which a group of people who have the objective of acquiring a house at a lower cost than the market participate. It is, therefore, an alternative to direct purchase via promoter.
How are cooperatives governed?
How cooperatives are governed. ... The legal framework that regulates cooperatives is protected by Law 127 of January 27, 1964 and decree 623-86 that regulates it, are the legal instruments that instruct the official operation of cooperatives in the country.20 sea. 2015
What do cooperatives do?
A cooperative is a company made up of people (natural or legal) who unite voluntarily to meet the needs and the common economic, social and cultural aspirations through a jointly owned and democratically managed company
It is a useful and cheaper formula to acquire a home than to do it on the free market. The expenses are less than the direct sale of free promotion.
Every year, thousands of homes are bought in Spain by the cooperative method. This system is governed by specific legislation to provide security for cooperatives, and even has insurance against scares. Here are the advantages of buying a home through the cooperative.
How does it work
1. Constitution. A group of people unites to form a cooperative contributing their savings. Choose a governing council. This cooperative buys land and on it hires a construction company and builds a residential building. It must be clear that cooperative members become promoter entrepreneurs.
2. Manager. The cooperative hires the services of a management company, which is in charge of keeping the cooperative members informed, managing the funds and managing the work. It oversees and is obliged to comply with the administrative, legal and technical aspects of the promotion, from permits, licenses to the conversion of the cooperative to the Community of Owners.
3. Promoter-manager. In many cases, the person behind a manager is a real estate developer. The reason is that with this, the cooperativists put the funds to finance a work in advance. The advantages for cooperative members is that a promoter-manager has experience and knows how to deal with construction companies, to get better prices.
4. End. Once the house has been built, the cooperative is dissolved and the keys are handed over and the property deeds are deeded. From that moment, it becomes a community of owners governed by law.
5. Mortgage credit. With the property deed, the mortgage is also signed. Cooperatives have paid a part of the cost of the apartment, between 20 and 30%, and now the bank puts the rest. The cooperative member, like any mortgage loan, will pay it to the bank in installments over the years.
1. Cheaper. The traditional way of buying a home usually goes through an intermediary. It can be a property agent, who takes a commission. Or it could be a developer, who, in turn, has hired a construction company. Or, finally, the homeowner. All of them apply their profit to the price of the house. A cooperative skips these steps, so it builds its own home by commissioning it from the builder. There are no intermediaries. The savings can reach 20 or 30% of a home in free sale.
2. At ease. The cooperative member can choose the materials and qualities of the interior of the house (for example, the bathrooms), as it is being built.
3. Design. The cooperative member can change the design of the floor plan of her home (as far as possible), adding separations, removing doors or expanding rooms.
4. Decisions. Important decisions are made in assemblies in which all votes are equal. They are taken by majority by show of hands. There they decide things like additional contributions, allocation of excess parking spaces or installation of surveillance cameras.
5. Exit. A cooperative member can leave the cooperative and demand the return of the amounts contributed. Your rights are first offered to other cooperative members. If in two months there is no internal interest, then it is offered to people outside the cooperative.
6. Sure. In the event that the construction company does not deliver the homes within the agreed period, there is an insurance company that covers the contributions of the cooperative members. It is a legal requirement since the UGT cooperative called PSV went bankrupt.
7. Mortgage. Before the property deed is delivered, the cooperative member receives offers from the bank that helped finance the work. It is usually an offer that enjoys better conditions than the market.
8. Less expenses. Management, notary, registration ... costs are usually less than those derived from a direct sale.
1. Information. Before entering a cooperative, you must find out if it is affiliated with a federation or a regional union. Cooperatives are governed by the laws of each autonomous community, but under the umbrella of a state law.
2. Manager. Investigate the historical evolution of the manager, and verify that it has kept its word, and that it is made up of professionals.
3. Bank. Talk to the banks before formalizing entry into a cooperative, to find out what the conditions of a mortgage loan and management costs could be.
4. Assemblies. Attend all assemblies and expose all doubts. Be in permanent contact with the representatives of the cooperative and with the manager.
5. Insurance. Investigate if the project has contracts with insurance companies specialized in covering housing promotions.