What is Professional Co-ownership?
Professional Co-ownership is a form of co-ownership but, instead of being between two or more individuals, it is formed between an individual and a corporation.
At Ourboro, we specialize in professional co-ownership. Ourboro contributes towards the down payment of the home for a share of the equity in the property. Through our professional co-ownership model, the money we provide toward the down payment is a co-investment, not debt. That is why there are no interest or additional monthly payments.
Why is this term important?
Professional Co-ownership is important as it comes with additional benefits that conventional co-ownership, between two or more individuals, doesn’t.
As a corporation, professional co-owners like Ourboro don’t have an emotional attachment to the property. This means the home is 100% the co-owner’s to live in and enjoy. In fact, Ourboro will enter the agreement expecting to never step foot on the property.
Here is an example:
As a professional co-owner, Hany Adam Homes’s relationship to co-buyers is as an investor; we only benefit when the home appreciates in value, just as our co-owner would. If the home depreciates, we share in the losses too.
An additional benefit of professional co-ownership lies in the stability and security of our agreement. Hany Adam Homes’s co-ownership agreement has been reviewed extensively by our lawyers, stakeholders, and by various partners, and industry experts. The agreement is also reviewed by each and every one of our co-owner’s independent legal advisors prior to each co-investment. This ensures the agreement has been thoroughly understood by all parties. When private individuals are drafting a co-ownership agreement on their own, there is a higher risk that elements may be overlooked, leading to future disputes.