What Is A Co-ownership Agreement?
A Co-ownership agreement is a legal agreement that outlines the rights and responsibilities of the people who own property together. It deals with items such as ownership interests, maintenance of the property, financing, and all owner’s rights and responsibilities. Partners can enter a co-ownership agreement during the purchase of property immediately following the purchase or whenever they decide it is the right time for them.
This agreement can be used in various circumstances, including the following cases.
- Purchasing residential property with family or friends
- Purchasing an investment property with other people
- Purchasing property with a spouse
- Establishment of mortgage repayment arrangements or refinancing to divide responsibility for the mortgage amongst various people
It is important to have this agreement as it can help prevent disputes and provide clarity on the rights and responsibilities of all parties involved in the co-ownership of property. It is essential to consult with a real estate lawyer when drafting a co-ownership agreement to ensure that all necessary provisions are included and that the agreement is legally enforceable.
An important part of a co-ownership agreement is the division of ownership interests. This section should include the percentage of ownership for each individual and any rules or restrictions for transferring or selling the property. The agreement should also clearly outline the responsibilities of each owner, including any financial contributions or maintenance tasks.
The co-ownership agreement should also outline how major decisions about the property will be made in a situation, including whether to sell the property or renovate it. If a disagreement were to arise between owners, it would be advisable to include a dispute resolution process.
Co-ownership agreements can also include provisions for what happens if one of the owners dies or becomes incapacitated. This may include conditions for the transfer of ownership interests or the sale of the property. It would be advisable to consult with a real estate lawyer when drafting your co-ownership agreement to ensure that all necessary provisions are included.
Contact our real estate law firm for help with your co-owner agreement
Need help drafting a co-ownership agreement? Contact us at our real estate law firm, we can help prepare a co-ownership agreement for you and your partners to help provide clarity on the rights and responsibilities of all parties involved in the co-ownership of your property.