Why do you need a co-ownership agreement in real-estate

 Co-ownership agreement why do I need it?

The co-ownership agreement determines the relationship with co-partners related to their co-ownership of a property. It involves things like ownership interests, maintenance of the property, financing, responsibilities, and each other's rights. For detailed information contact lawyers in Calgary. These co-ownership agreements are required while buying a property after the deal. Co-ownership agreements are required during the following times;

While buying a property with friends or spouse.

While buying a property with other people for investment purposes.

During refinancing divide the mortgage between various people.

Co-ownership agreements involve the following provisions;

The title will be taken as tenants in common or joint tenants.

The person who will reside will be mentioned ( whether temporarily or on a full-time basis).

It will include the manner of rent distribution between the co-owners case they give it on rent.

The Responsibility for the repair and maintenance of the property.

Rights to renovate the property and mechanism for co-owner consent.

It will include the mechanism of dispute resolution.

It also includes the consequences if one of the co-owners dies or is bankrupted and it also involves apportionment of ownership interests in the property and mortgage payment responsibilities.

Co-ownership is arise when the context of both single-unit and multi-unit properties. For a multi-unit property, a co-ownership agreement is required to deal with ownership interest involving all units in the property, or the interests of one or more particular units in the property. Co-ownership agreements are a precise mechanism in the context of marriage to handle property ownership among spouses. 

Co-ownership agreements are useful in various situations.

For instance;

While devising in a will by a trust or multiple people as co-owners.

When a family property is transferred or devised to successive generations.

A decision among friends, or family to buy property for investment purposes.

Following a separation or divorce, where the ex-couple doesn’t want to sell the property but instead wants to benefit from renting it out. 

In most cases the co-ownership agreements are necessary to create binding commitments; they offer guidance by providing a contractual framework for responsibilities and rights to ensure that all the co-owners can make decisions effectively and efficiently.

Do I need a co-ownership agreement? 

Yes, a co-ownership agreement is required in many situations for instance; when you plan to buy a property or you contemplate the purchase or resale of a property or a property interest, with more than one person you need to have a co-ownership agreement it is mandatory to avoid any problems in future regarding the property. 

we will try to explain it through a simple test if you answer no to these questions we would recommend you to have a co-ownership agreement in place. 

The intended contributions of both co-owners toward repayment of the property?

Will the mortgage contribution of both owners vary over time?

Will all the co-owners will have an equal interest in the property?

How to manage the liabilities for damages to the property by co-owners?

Conclusion 

In case your answer is “No” to these questions then our real estate lawyers Calgary recommend putting a co-ownership agreement in place.