Co-ownership of a property has its perks, which is the main reason people are increasingly opting for it. Owning property in general is a big deal, therefore requires careful consideration, especially when co-ownership is an option. There are several factors that need to be taken into account, which will go a long way when one is looking to avoid disputes. Our main advice is an agreement between the parties who own the property.
What the agreement should contain
One of the first things to be done should be the drafting and the signing of an agreement between the parties who own the property. This agreement should be very detailed – this lessens the chances of confusion at a later stage. If upon purchase of the property unequal amounts were contributed by the parties then it would be best for this to be stated and provisions be made as to how this will affect the ownership.
After the nitty-gritties of acquiring the property are out of the way, managing and maintaining the property will play a vital role in your experience of having the property. Have it detailed in the agreement as to who is responsible for the maintenance of the yard, payment of the water and lights, parent for repairs etc.
In the event that the property is being sold, it should be stated how this will take place. For example, it needs to be stated whether the whole property has to be sold thereafter the proceeds shared amongst the parties or they may agree that if one party would like to sell then that party will give the other party a right to buy.
In the unfortunate event that one party passes away, the agreement should state what is to take place. This will be in accordance with the monthly expenses, the ownership, etc.
The above is a rough guideline of what one should consider when co-owning a property. We strongly advise legal advice prior to decisions being made. A well-informed property owner is a successful property owner.