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What is the difference between Tenants In Common and Joint Tenants?
Tenants In Common can choose to own property with others as Tenants in Common. Each have property owners that can buy, transfer, mortgage, or assign their interests. This means that the owner has the right to do whatever they prefer to the property, but to their interest only. This agreement is great for friends because each decides who inherits their ownership.
Joint Tenants have the right of survivorship and used by married couples. This means the property has no divided interest and both parties own 100% of the property. The right of survivorship clause allows the property to pass to the other party outside of the will.
What are examples of Co-Ownership?
Any combination of individuals can enter into a co-ownership arrangement. The most common options include the following. A new college graduates with their parents or step-parents. Co-owning a mortgage with their fiancé or spouse. A group of childhood friends or college classmates purchasing a home together. Two or more colleagues or individuals. Two or more families buying a shared home. Two or more Cher users with similar housing needs. With multiple signatures, the chances of a home loan being granted are usually high, even with low credit scores.
What is the difference between a co-owner and cosigner?
That is the key difference between a co-borrower and a co-signer. If your loan is to buy a house, then the co-borrower has an ownership interest in that house2. If the loan is to buy a car, then the co-borrower has an ownership interest in the car. Co-borrowers are usually partners or spouses.
Why co-own a home?
The lack of affordability and rising student debt with revolving credit. Increasing rental rates, while mortgage payments are generally fixed. The desire to not compromise on a fixer upper home in an undesirable location. The ability to gain equity, tax benefits, financial freedom, and even future family opportunities. Co-owning is a stepping stone to buy a home by oneself and these are problems that can be resolved by co-owning a home.
What are some current problems with co-owning homes today?
Seeking legal help to create unique contracts. Incur added closing costs by inexperienced real estate professionals. The lack of flexible exits, and how to sell your ownership rights fast and who to co-own homes even with.
How does Cher make money?
Cher charges a fee to the real estate agents at the close of escrow. It is free to use for all professionals and co-borrowers.
Do you manage the relationship between owners?
In short, no. We do not handle disputes between co-owners. Cher's contracts frame everyone's mindset as a co-owner and the steps they follow to exit or sell. We provide the platform for vetted and pre-qualified users to find one another, build a relationship, and buy homes together. We provide a variety of tools for this relationship to be successful, but the decision to buy a home is by each user.
What happens when a co-owner can not pay their part of the mortgage?
Cher has partnered with insurance providers that will step in and pay missing mortgage payments in the case of disability. It is a type of worker's compensation tailored for mortgage payments. To qualify, all co-owners need to sign up either before or after the escrow process.
What happens when a co-owner refuses to pay their part of the mortgage?
Cher's unique contracts specify your exit solutions within a 90 day period. If an exit is not done within this timeline, all co-owners agree to sell the home.
Do you manage the exits or sale when a co-owner wants to leave?
Cher provides tools to more easily exit, rent, buyout, or transfer ownership rights to receive equity effectively. Cher assists in contacting real estate professionals to process your request and provide discounted services.
Are the users on Cher vetted?
Cher strives itself on creating a safe and secure marketplace. We screen all users with third party Experian credit checks to ensure matched co-borrowers can afford the homes they shop for. We also verify identities through Cher Verify. This process compares facial recognition and government issued licenses.
What if co-owners have different objectives and priorities?
Users answer a variety of questions in their personal including objectives in their personal profile. As with any social platform, it is up to the users to decide if they should live together and co-own. For a fee, Cher can process the collection of different forms of payments from co-owners to pay utilities, lender, and other related costs.
Who finds the home?
All co-borrowers buy a home they agree to. Realtors on Cher will help users through this home buying process. During the matching and pairing process, users have access to properties on the multiple listing service. With the help of Cher's real estate professionals, users can find their dream home.
How does the paperwork get handled?
Real estate professionals will communicate deadlines through our platform. Some Realtors and other professionals prefer to send contracts through Cher's team hub. We designed Cher to provide a more collaborative escrow process. Cher requires the real estate team you and your co-borrowers select to update escrow deadlines through Cher.
What if I want to use a real estate professional that does not have an account with Cher?
If your real estate professional does not show up when searching, we will email them a link to create an account through Cher.
Are the real estate professionals listed on Cher and advertised on Cher's Clique licensed under Cher’s brokerage?
Many of these professionals are only licensed to use our software and are not agents of Cher. We vet each applying real estate agent regardless of what brokerage they currently work for. Our future plans will be to capture this revenue as we scale and operate as a turnkey real estate development platform.
Why does Cher provide matches? Options. Cher believes people should have an opportunity to co-own with people outside of their family or close friends. Why waste your time and hard earned money renting with someone to learn if co-owning is a good decision. We know that process can end up being several years, and by that time co-owning may not be the best choice someone.