By: Brian Horwitz - April 2021
There are many moving parts that need coordinating in order to co-purchase and thrive as co-owners on shared land. Nothing worthwhile comes without hard work and creating this type of homeownership requires knowledge, full commitment and unified collaboration.
It is crucial that groups have a clear understanding on how shared land will be owned, financed and governed in order to live harmoniously on a shared property. Each of these elements need to be approached in fine detail and organized in a manner that is agreed upon, understandable and legal. Having a clear understanding on these fundamental components will enable a group to establish a unified social framework and legal framework, adding clarity on how decisions are made, how units are sold and how the land will be used.
The way a group chooses to live on the land will further impact on how a group is structured legally. The structure of a group can be shaped and molded into an infinite amount of possibilities; creating unique forms of home and land ownership that support sustainability, affordability, security and social networks.
A group can incorporate as a company, as a not-for-profit society, a strata, a co-op or form as a partnership. Some groups are equity focused while others are not and no framework is the same. Every landshare will have its own unique structure regarding liability, accountability, return on investment, taxation and governance relationships.
Once these essential elements are in place and a framework has been established, a group can further explore different types of conceptual design plans. A conceptual design plan is a visual presentation, encompassing the framework and how the land will be developed and used. Every property is unique and groups must realize that each design plan will need to be specifically tailored to each project’s needs.
The conceptual design plan is the backbone to a group’s proposal. Having a solid proposal in place is essential in order to gain support from local municipalities and lenders. Visuals and modelling are a great way to bring life to a proposal, illustrating how water, energy and waste are all used and managed. Everything needs to be in place at the time of the proposal.
Now, more than ever, the world is embracing progressive and creative initiatives. New technologies are constantly emerging, improving efficiency and creating a deeper understanding of sustainable land use. Landshares come in many shapes and forms and in today’s world it seems that thinking outside the box is appropriate and realistic.
Preparation is essential when it comes down to co-purchasing and developing land in a group dynamic. Groups need to meet regularly and realize that a unified co-ownership agreement requires cultivation in order to fully understand how the land is owned, governed, developed and lived on. These key components are the true building blocks to any successful landshare before any shovel goes into the ground.
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