What is Co-Ownership?

Like many other families during the pandemic, ours needed a temporary escape from the city. An idyllic retreat in a Bay Area beach community was the perfect answer, since it was still close enough to San Francisco and Marin for in-person appointments. But the truth about second homes is that most of us don’t take advantage of them as much as we think we will, which leads to guilt and second guessing your investment.

This is where co-ownership can be beneficial.

Instead of buying our beach home as the sole owner, we bought it with another close friend and family. Having known and traveled with them for years, we felt we could trust them in this financial investment together.

Logistically, the concept of co-ownership can seem daunting at first. But we learned very quickly that structure is the key to success in this venture. For instance, how the property will be purchased and how title to the property will be held.  Much like tenancy-in-commons (TICs), with multiple owners of an asset, a partnership agreement must be in place. The important points to address here are the Three D’s: Death, Divorce, and Disability and to outline specifically what happens in any of these situations.  

Other equally important matters to consider are scheduling the usage of the property and house rules to adhere to. In our situation, each family schedules by the month which allows for the planning and invitation of guests to join well in advance.  In the summertime, we enjoyed having both families co-mingle so we can spend some quality time together.    

If you would like to learn more about co-ownership, I would be happy to share more of my knowledge and experience. You can reach me at [email protected] or by phone at 415-401-9966.