Costs of Ownership

Each ownership model discussed in this chapter involves the law, to some degree. In addition to legal fees, you will also have to pay fees for filing the correct paperwork with the state and local government, as well as property taxes.

Some ownership models, such as condominiums, can cost several hundred to several thousand dollars to legally divide each individual space into a separate tax-paying units. Other models, such as corporations, can become expensive and time-consuming. You will need to file paperwork with a variety of state and federal government agencies on an annual basis, as well as develop bylaws, create stocks, shareholders agreements, etc.

Seeking a lawyer's services is advisable in any real estate purchase, but is even more important when you are considering forming a business organization or nonprofit in order to purchase the space. Again, not only will you need to file the correct paperwork if you pursue this model of ownership, but you will also need to compose an operation agreement to stipulate how the space is operated and managed.

See Chapter 4: Professional Services for information on obtaining legal advice. For more information about forming a corporation (including condominiums and cooperatives), see the section Home Ownership, which has links to the legal guidelines and requirements set by the Illinois Secretary of State Department for each ownership model.