Real Estate can be a lot of hard work, whether you are purchasing your first home with your spouse, starting a business with a partner, selling a property, or renting a place, there is always stress and a lot of paperwork to be done. People who are not used to the real estate world can find it very confusing to navigate around, especially if you wish to get a co-ownership agreement with someone else.
Most real estate lawyers will advise that you draft a co-ownership agreement with your business partners, friends, or family members, depending on the case. Having a real estate lawyer with you throughout the process will be in your best interests to ensure all deadlines are being met, and every piece of document necessary is being completed accordingly to avoid any surprises. And one of the things your lawyer can support you with is co-ownership agreements Calgary. But firstly, we need to understand the basics of it.
What Is a Co-Ownership Agreement?
A co-ownership agreement is, in short, a contract where two or more parties agree to share ownership of a property. They can own equal amounts of the property, or the parties can share it based on their own terms and needs and choose the appropriate ratio. There are multiple reasons why people seek co-ownership agreements, but one thing is always true: a clear and concise co-ownership agreement can save all parties tremendous headaches down the road. Experienced lawyers in Calgary can work as a mediator between parties and settle the ratio in which each party owns the property and include it in the co-ownership agreement.
A co-ownership agreement also clearly states each party’s responsibilities and rights toward the property. Things such as maintenance, usage, and expenses are all written down on the agreement to avoid misunderstandings later on.
Even though disputes may be a delicate subject to touch on, it is important all parties take the time to discuss how disputes will be addressed should they arise; which includes leaving the contract. Disputes can become extremely stressful quite quickly, and when the co-ownership is between family members it can sour their relationship just as quickly. All problem-resolution strategies must be well outlined in the contract to ensure the relationship is healthy.
Other terms and situations can be included in the agreement based on the necessity of each specific case, and a good lawyer can support you in finding them as well. The agreement must fit everybody’s alignments as much as possible.
Do I Really Need a Co-Ownership Agreement?
If a co-ownership agreement seemed too much for you, do not worry – you do not really need one. However, it is extremely advisable for you to have one, should the opportunity arise. Once again, this is but one of the reasons why having a real estate lawyer with you is in your best interests, they will do the hard work for you.
A Co-Ownership agreement exists to bring security and peace of mind to the people involved in one, while it may sound like a headache in the beginning it will possibly save you much worse ones down the road. For couples purchasing a home, for example, it protects both of them in case they file for divorce.
As previously mentioned, this agreement can be done between business partners or friends purchasing a property together. The value of this agreement lies in being able to outline specifically what is each person’s roles and responsibilities, as well as outline what can and cannot be done. Partners and friends can rely on written terms to make sure the relationship will not sour and that it can prosper continuously.
When a property is being used for commercial purposes between business partners, the co-ownership agreement is even more important since there are so many more details to be included. They are the ones most likely to have conflicts in their relationship and this can be a great obstacle to the health of their company. In any situation clear and concise language is important, but in business partner relationships it is even more pivotal that the agreement is as plain as day.
Co-Ownership agreements are great tools to ensure that your relationship with your partners does not sour and can always be smooth. Unfortunately, many relationships are ruined by things that could have been tackled long before, and it is in no one’s interest for relationships to turn sour.
If you are currently planning on purchasing a property with other people, deeply consider a co-ownership agreement. They must be done carefully and need to be clear and concise, and leave no room for doubt of anyone’s intent. Having a seasoned lawyer with you will ensure that all common issues can be agreed upon and signed – such as how the mortgage will work if applicable, how will it be shared, liability, and more.