The Inns and Outs of a Property Co-Ownership Agreement Template
Do you want to purchase a property with someone who’s not your spouse (e.g., your friend, family member, or business partner)? Since there aren’t many laws that regulate each party’s rights and obligations regarding the property, you should consider writing a property co-ownership agreement. If you’re wondering whether you should use a property co-ownership agreement template to compose this document, this guide will provide an answer!
What Is a Property Co-Ownership Agreement?
A property co-ownership agreement—also known as a property sharing agreement—is a legal document signed by the property owners. Its primary purpose is to outline each owner’s property-related rights and responsibilities. A property co-ownership agreement is useful for both investment and residential properties.
This contract is typically signed between:
- A child and a parent who co-own property and live there together
- Two or more individuals who want to invest in real estate
- A parent and a child if the parent is a co-owner because he or she is providing financial help for property purchase
- An unmarried couple owning property together
- A party that owns a house or apartment and another party interested in buying in and becoming a partial owner
Besides offering legal protection to all signing parties, a property sharing agreement can also help avoid conflicts and misunderstandings. It can even spell out how any potential disagreements will be handled.
Learn Which Issues a Property Co-Ownership Agreement Needs To Address
A properly written property sharing agreement needs to cover certain aspects. These are some of the questions that your property co-ownership agreement should answer:
- Who will buy the property?
- Which party will hold the title?
- What property ownership percentage will every signing party own?
- Who will provide funds for the down payment?
- How will the payment of the mortgage be divided?
- Which party will cover the mortgage?
- What will happen if one of the signing parties can cover his or her share?
- How will taxes, insurance, and other property-related payments be divided?
- What is each owner responsible for regarding cleaning, maintenance, and similar?
- What’s the procedure if one party wants to sell the property and the other signing party does not?
- What will happen if one of the property owners passes away?
Should You Rely on Property Co-Ownership Agreement Online Templates?
Online samples can be a good starting point if you’re not sure how to structure your agreements or which information to cover. While contract templates are sometimes useful, they aren’t the ideal solution.
Templates are usually too generic, and they don’t fit every situation to a T, which can be a problem. If you decide to use one of the property co-ownership agreement samples, you’ll probably have to spend a few hours adjusting it to your needs. This approach can be risky because you’re more likely to make mistakes that can jeopardize the validity of the agreement.
Hiring a lawyer would be the safest solution, even though you might have to pay a few hundreds of dollars for the agreement. If you want to write the contract by yourself or modify the existing template, you should consider scheduling consultations with a lawyer. He or she will tell you if your document needs changing.
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Do you and your property co-owners want to find tenants? In that case, you’ll need a well-written residential lease agreement. DoNotPay will help you create a personalized agreement in the blink of an eye.
Whether you want to draft a lease agreement or other legal documents, you should sign up for DoNotPay and do the following:
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Take a look at the table below to see some of the contracts we can help you draft:
|Real Estate Agreements||Business Contracts||Other Documents|
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