Luxebook November 2022

How does it work? The relationship between co-owners in case of TIC can vary as do the financial and legal obligations which depend on the relationship between each party. The details of co-ownership are established in a property deed and title which includes information about the mortgage and names of the owners, among other details. The type of co-ownership is seldom stated in the contract in TIC; each tenant maintains a separate fractional interest in the property, the details of which are never mentioned in a contract. Another crucial factor in TIC is that unless it is specified contractually, the rights of ownership do not sustain the rights of survivorship. This means that if one of the co-owners of the property dies, their share is automatically transferred to an heir or next-of-kin and not to the remaining tenants. The owners can freely transfer their interest in the property if and when they choose to and can also rent out their share if permitted by the shareholders/business associated with the property. Co-ownership in the west While co-ownership is a fairly new market in India, it is a much more mature concept in the west. Surveys have shown that second homes or holidays are used for no more than 15 per cent of the year which is about 40-45 days at most. In such, second homes are lying vacant for most of the year, with no one living in or looking after them.“The beauty of co-ownership is that it allows you to pay a fraction of the amount which justifies the number of days an owner actually spends in that home. So, when it comes to a holiday home abroad, co-ownership is a mature grown market with quite a large audience in the west,” Chandran adds. “Abroad, there are finance options on co-ownership with a resale guarantee of up to 12 months which only eases the process.” Speaking about successful platforms for coownership, Chandran gives the example of Londonbased Altacasa. Founded in 2021 by entrepreneur Romain Saint Guilhem, Altacasa allows people to buy a share in a dedicated limited company that owns the whole Altacasa property, allowing them access to larger, higher-quality homes for a fraction of the price. At Altacasa, people can hold a minimum sixth share in the home, where they will be able to use the house for at least two months of the year, depending on the size of the share. The scheduling, cleaning, maintenance, and management of each property is handled by Altacasa’s technology platform which ensures a smooth process for each of the owners. To improve affordability, the costs for taxes such as stamp duty are spread across the owners and bundled in with the property cost. Along with adding more properties to its name, Altacasa is looking to expand its horizon. The start-up is currently working to develop its technology and grow teams in London, Paris and Luxembourg to further widen its audience. Another successful venture Arrived Homes, a Seattlebased real-estate investment company backed by Bezos Expeditions has also successfully delivered as many as 100 single-family homes in cities across the US. The company received regulatory compliance from the U.S. Securities and Exchange Commission (SEC) to be qualified. Currently, Arrived Homes offers property shares to U.S.-only investors, who buy shares starting at US$100. Canada-based Addy, founded by Michael Stephenson, Stephen Jagger, and Jeff Booth, although a similar concept, serves as a mix between a landlord and property manager. Unlike other companies, Addy offers more than just residential properties, these include mixeduse, industrial, and commercial properties as well. The platform allows retail investors a chance to own property, in a co-ownership way, helping them capitalize on real estate deals. Addy breaks each property into investment increments valued at US $1. Units of each investment are listed for sale on the platform and an investor can invest anywhere from one dollar to $1,500 per property. For example, a $1,000,000 investment opportunity would be divided up into 1,000,000 units. While all of the above platforms have their own succesful models, the most popular platform in the US for co-ownership of property is Pacaso. Co-founded by Tenancy-in-common is a newly-popularised concept. 54|L U X E B O O K|N O V E MB E R 2 0 2 2 N O V E MB E R 2 0 2 2 |L U X E B O O K| 55