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viernes, 25 de marzo de 2022

Member of a housing cooperative

What does it mean to be a member of a cooperative?


What it means to be a member of a housing cooperative is the first thing you should be clear about if you are considering purchasing a home under a cooperative system. And, if you are already part of a cooperative, this post can be enriching.


What is it to be a member of a housing cooperative?

 To understand exactly what it means to be a member of a housing cooperative, it is necessary to understand that you are going to be part of a community that shares a common interest: to acquire your home in the best conditions and with the best qualities, but cheaper.

It also implies that there is no property developer, but rather that the members of the cooperative are the co-promoters of the home. For this reason, one of the main advantages of housing cooperatives is that you save around 20%, more or less what the real estate developer,s commission would entail. But also, you must keep in mind that your decisions affect others!

In addition, it is important that you are clear that the cooperative regime requires understanding that three important milestones must be met:


Buy the land on which to build the houses.

Bring together the group interested in becoming partners.

Obtain the financing to build the houses.

And, above all, we always recommend that you become a member of a housing cooperative that is coordinated by an expert cooperative manager.


Who can be a member of a housing cooperative?

Natural and legal persons.

Public and private persons.

Communities of goods.

Each of these people and communities may be members depending on the activity of the cooperative and its Statutes will establish the requirements that you must meet to become a member of it. Of course, they cannot go against what the law establishes.

What are the principles that govern cooperativism?

A housing cooperative is a company with its own legal personality made up of people who associate voluntarily, non-profit and with democratic structures and operations.
Said operation will be governed by the provisions of its Statutes, where its main characteristics and operating rules will be collected.
When you become part of a housing cooperative, you tacitly assume cooperative principles that are specified in:

Voluntary and open membership.

Economic participation of the partners.

Autonomy and independence.

Training and information.

Interest in the community.

Audit of accounts as it is a fiscally protected company that allows the transmission of the participation.

What is the dual condition of a cooperative member?

In addition, you acquire a double condition. On the one hand, you are the winner of the house. On the other, you become a co-promoter of the housing cooperative. Remember that the main reason for savings offered by housing cooperatives is that the promoter disappears, and, therefore, his margin.

Consequently, the housing cooperative becomes the promoting company and, therefore, the owner of the development. Therefore, the cooperative partners are, in addition to being awarded the homes -each one their own- co-promoters of the entire real estate project.

This means that everything related to the construction of the houses is paid for with the contributions of the cooperative member and the promoter loan granted by a financial institution.

What do I need to join a housing cooperative?

As a member of a housing cooperative you have the right to participate in each of the stages that the development goes through from the moment you join. This is done through the General Assembly, which is the highest expression of democracy within housing cooperatives. You will have voice and vote!

This intense and democratic participation is where lies – along with savings – the greatest attraction of housing cooperatives. Through it you will not only get the highest quality in the realization of homes at the best price, but also in an optimal environment.

Difference between member and member in a housing cooperative

Member and member of a housing cooperative, is it the same? Absolutely!

What does it mean to be registered in a cooperative?

When you sign up for a housing cooperative, you acquire a registration number that will allow you to choose the home you want ahead of those who have signed up after you, but not of those who become members before you. I,ll explain!

A registrant is a person who makes a housing application with the expectation of becoming its successful bidder. Therefore, the registered person does not have a reserved dwelling nor is he a member of any cooperative.

When a person joins a housing cooperative, what he does is show his interest in the promotion, receive information and fill out a form with his data. This form reflects the home you are interested in, as long as it is available. That is, it has not been previously chosen by a cooperative member.

In addition, it provides a symbolic signal that would be returned immediately by the cooperative,s manager, in the event that it finally did not decide to be part of the common project.
In the event that two people register and show interest in the same dwelling, the second registered must wait for the dwelling in question to become available or will have to choose another. Unless he decides to become a partner. In other words, if the second person interested in the same home decides to acquire it by signing the award contract, the manager of the cooperative will notify the first registrant to notify him that there is a second person interested in the same home with the intention of becoming a member. From that notification, it depends on the determination and speed with which the first interested registrant acts to become a member.

What does it mean to be a member of a cooperative?

The condition of partner is acquired with the signing of the award contract and the deposit in the bank account created for the purpose of the signal to reserve your home. It is important that you are clear that both the deposit and the successive monthly payments are payments on account of the price of the house.

Being a cooperative member implies several things.

To begin with, the cooperative member already has the house he has chosen firmly reserved. This may not be offered under any circumstances by the manager of the cooperative to any other interested person – regardless of whether he is registered or a member. In the hypothetical case that the cooperative member decides to cease to be a cooperative member by signing the corresponding termination contract, the dwelling will be available again and will be offered, in all cases respecting the order of registration.

In addition, the cooperative member becomes the holder of the rights and obligations that are established both in the award contract and in the cooperative,s own Statutes.

Also, he must face the payment program that corresponds to him according to the home he has purchased. And, like any son of a neighbor, he will have to pay the necessary expenses to deed his home.
Belonging to a housing cooperative implies being part of a community that shares a common goal and in which certain milestones must be met gradually. You will feel at home from the beginning because your opinion will be important and taken into account. Remember that you are not alone. My recommendation is that you adopt a positive attitude and respect for others from the beginning. Do not forget that the benefit of all will be your own benefit.