Buying Property with Friends and How a Real Estate Lawyer Can Help
Many people buy a home for the first time with their spouse. In a real estate market like Vancouver, many also choose to buy with relatives including parents, siblings, or a group of people that can pool their financial resources together. Perhaps you receive a gift or loan to purchase a property.
Owning a property with another person can be very complicated. For example, what if one owner wishes to sell the property and the other doesn’t? Or, what if one party ends up doing all the payments and the other doesn’t contribute?
Enter the co-ownership agreement. This simple agreement can easily be prepared at any time at Morris Law by our qualified real estate lawyers.
What Is a Co-Ownership Agreement?
A co-ownership agreement is a set of legally binding rules prepared with the help of a real estate lawyer that addresses the responsibilities and obligations of the co-owners of a property.
A few of the main topics that a co-ownership agreement addresses include:
- Which party or parties will buy the property and hold title to the property?
- Who will contribute to the down payment?
- Who is responsible for the payment of utilities, taxes, and insurance?
- How major decisions like renovations are to be made?
- How funds are to be divided upon the sale of the property?
Is a Co-Ownership Agreement for Everyone?
We think so! Here are some common examples of co-owners who benefit from a co-ownership agreement:
- Unmarried individuals own and live in a property together
- A parent assists a child in purchasing a home
- A parent and a child co-own a home in which they both live and share the financial burden
Events like a death, a birth, or a marriage can change your life in unexpected ways when it comes to owning property, especially in an expensive city like Vancouver. With the help of a real estate lawyer, you can set up a detailed co-ownership agreement that will break down important elements like the rules and regulations of the home and monthly financial obligations of all parties.
This sounds like a good idea but I didn’t do it when I bought my house with my friends.
No problem! A co-ownership agreement may be entered into during the purchase of a property, immediately following the purchase, or at any time as required by the co-owners. However, we do recommend having it done by a real estate lawyer at the onset of a purchase.
Getting everyone on the same page at the onset when it comes to expectations and intent can be a practical and helpful exercise before you negotiate an important purchase like that of a property. A strong co-ownership agreement can easily save you tens of thousands of dollars by helping to avoid disputes altogether.
Does a co-ownership agreement sound like a good idea for your situation? The real estate lawyers at Morris Law make it fast and easy. We can help you draft, review, and amend existing co-ownership agreements and register the deed to a property owned by multiple parties. Get in touch with Morris Law today.