This post is meant to help Reeflings plan their finances in the run-up to the notarial deed that will grant us the full ownership of the JET-14 site. Please @reef-full read in full.
Background
- In June 2024 a group of people in representation of The Reef signed an offre irrevocable to purchase the JET-14 site for one million EUR. The associated taxes and notary costs come an additional 132,000 EUR, which we will also pay (internal link).
- Because of a loophole in the relevant Brussels legislation, a group of four households (buyers) is signing the offer with the seller. These four households, plus five others, have then signed an accord préalable where they agree that the extra five will contribute to financing the purchase of the site, in return for the four buyers agreeing to sell to these five their shares of the lot once it has been divided (more explanations – internal link).
- The idea was the accord préalable would be extended to include any new full member of the group that would join between the offer and the signature of the deed. At the time of writing this, the household constituted by @joannes and Ann has applied to become a new full member. Everything that follows is based on the group now including 10 (up from 9) households, eventually purchasing 11 units (up from 10).
- The households who contribute to the purchase of the site are rewarded financially. We have not yet come to a final decision about how this will work precisely, but it most likely that any household that did not participate in the purchase of the site will have to pay an extra 4% on the casco price of their units. Exceptions can be made for lower-income households in the interest of inclusivity.
- If a household involved in the purchase of the site decides to leave the project before the completion of the construction, it can do so according to the provision of the statutes. Essentially, it needs to find another household to take over its unit and finish it. That household’s contribution to the purchase of the site will be refunded in full (while the normal regime will be that an household exiting the project would only recover 80-90% of its investment, which is what Mark calls fermer la porte).
Timeline
- 25 May: everyone pays their share of the first deposit to the notary.
- 3 June: offer signed.
- 10 September: everyone pays their share of the second deposit to the notary. Please let Team Finance know ASAP if you cannot make the deadline.
- 15 September: compromis signed.
- 15 October: everyone pays the outstanding balance of their share of the contribution to the purchase of the site, plus taxes and notary fees, to the Société Simple. Please let Team Finance know ASAP if you cannot make the deadline.
- 15 December: deed signed.
Amounts
- The amounts we contribute to financing the purchase of the site are an advance on the cost of the units. They do not represent a cost to you. You will recover the advance by paying less on the construction, because the principle is that each incoming household must pay as much per square meter as the extant households have already paid. This means that the “latecomer” households will finance more of the construction, whereas we “early movers” finance more of the site.
- The amounts are in the spreadsheet you will find in this folder. There are two tabs: “May” reflects the accord préalable signed in May, “August” the current situation with one more household. You should obviously look at the latter.
- These amounts are maximal. They can go down if one or more households join us in time for the deed, but they cannot go up.
- Amounts owed by each household are based on the number of square meters each of us wants to purchase. Please note that, once we have put a price tag on each unit (this will require the avant-projet from the architects), we will switch to the price of units (rather then their surface) as the division key.
- With the current 10 households, the total contribution to the purchase of the site, plus taxes, plus notary fees, is of 1,217.86 EUR per square meter (down from 1,405.34). The contribution to the 50,000 EUR deposit is of 53.79 EUR per square meter (down from 62.07).