The Importance of Clear and Concise Language in Co-Ownership Agreements

When dealing with real estate it is always recommended to have a real estate lawyer with you to review and go over contracts. That is because small details are extremely important in any contract, and when doing a co-ownership agreement you want to be as clear and concise as possible to avoid anything going wrong.

Co-Ownership agreements are, in short, when two or more people decide to own a property together, there are multiple reasons why people do it and multiple ways of approaching the agreement, but one thing that is imperative is that the agreement is reviewed by all parties, agreed upon, and leaves no room for mistakes.

In the next short topics, we will look over the importance of clear and concise language in co-ownership agreements Calgary. The Importance of Clear Words

While a co-ownership agreement is not exactly imperative it is extremely advisable the same way writing your will together with your lawyer is. A Co-Ownership agreement brings security to all parties involved, and guarantees that every decision must be done together and upon the agreement of all parties.

Sometimes people will not take this much into consideration, but when doing a co-ownership agreement, the written terms are of extreme importance and need to be clear and leave no dubious meaning. Most of the time when this does not happen, it is either because the contract was not properly reviewed by an experienced real estate lawyer or because of the trust between parties. But what people tend to forget is that situations change, what happens if the trust you once had in another person vanishes or the other person becomes incapacitated of taking decisions and someone else has to? If a situation arises where you need to take legal action and the contract needs to be reviewed by a judge, clear and concise language will make clear what the contract was for and the intention of the parties when they drafted, reviewed and signed it. This means that no other evidence will be considered as to what the contract meant, so a judge or jury can decide if one of the parties has indeed breached the contract.

What Happens If the Contract is Dubious? 

If a contract becomes dubious and the intent of those who signed it cannot be defined clearly by the wording of the legal document, then the intent becomes a factor. The judge will need to see other evidence to come to a conclusion about what the contract was supposed to be.

However, whenever another person has to decide what was the intention of the parties when the contract was drafted and signed to conclude what is the next path forward in a legal situation, it may not be what either party wanted when they signed the contract.

When a contract also has ambiguous meanings and vague words it can also come back to being a problem. When words are used that can give a second meaning to the contract, a judge may deny or grant requests from one of the parties that will influence the decision of the matter.

Whether you trust your business partner, or your friend, or are joining a co-ownership agreement with a spouse or family member, it is advisable to always assume something could go wrong.

Having an experienced real estate lawyer with you when drafting and reviewing your contract is extremely valuable and will help make sure that your contract is clear, concise, and cannot be misinterpreted by others.