Share Purchase on Behalf of Another
Are you considering buying into a cooperative to expand housing options for your aging parent or family member? If so, Gracewin has answers to common questions which highlight your ability to preserve your investment while supporting the independence of the resident member.
Can I make the share purchase on behalf of my family member?
Absolutely! We are happy to walk you through the process, which involves a simple agreement being completed. As a share purchaser, you do not have to submit to the normal application, income and background screenings that prospective members are required to complete.
Is this the same as sub-leasing?
No, it is not. In this situation, the agreement specifies that the person purchasing the share on behalf of the family member will not be the one residing in the home.
What is the process to purchase the share for a family member?
The process is very straightforward. A simple 3-page agreement is signed by the Cooperative, the family member purchasing the share, and the person that will be occupying the residence (the Member). The Member that will be occupying the residence will be required to pass the income, credit and background screens required by the cooperative.
Do I get to vote in Cooperative elections and other voting matters?
No. The voting rights would be reserved solely for the Member that is in residence in the home.
What happens when my family member passes away?
If your family member living in the cooperative passes away, then as the Purchaser you would have the sole and exclusive right to receive the proceeds from the sale of the cooperative share, less any deductions provided for in the Bylaws or Occupancy Agreement.
Will my name be on the Membership Certificate?
Under this situation, the following language would be included on the members name line of the Membership Certificate: Subject to the Ownership Agreement between (new member and financial guarantor) dated XXXXX.
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