What is Co-ownership Agreement?
A co-ownership agreement is a legal agreement between all co-owners of a property. This agreement establishes the rights and obligations of each co-owner, protecting all parties if a dispute occurs. Co-ownership agreements are typically signed before, or when, a property is purchased.
Why is this term important?
Co-ownership agreements are important to protect all co-owners while preventing and resolving any potential disputes.
Without a clear co-ownership agreement, each party may have a different understanding of what is expected of them and what rights they do, or don’t, have to the property. This can lead to future disputes resulting in financial and emotional stress.
Here is an example:
Co-ownership agreements may include each parties rights, responsibilities, and obligations on topics including, but not limited to:
- Ownership structure,
- Decision-making and dispute-resolution mechanisms,
- Occupancy rules and regulations,
- Sale or purchase of an individual co-owners interest in the property, and
- Total sale of the property.