Co-owning a property is a popular investment strategy for many people. It allows two or more parties to share the cost of the investment and split the profits. However, it is important to have a solid co-ownership agreement in place to ensure a smooth and fair partnership. In this article, we will provide a sample property co-ownership agreement for two parties investing together.

Introduction

This co-ownership agreement (the “Agreement”) sets out the terms and conditions between two parties (the “Partners”) who intend to jointly own a property (the “Property”) for investment purposes.

Ownership

The Partners will own the Property as tenants in common in equal shares.

Contributions

Each Partner will contribute the agreed amount of capital towards the purchase of the Property. Each Partner will also be responsible for their share of maintenance and repair costs.

Management

Both Partners shall have equal decision-making power and authority in all matters relating to the Property. Decisions made by either Partner must be approved by the other. Both Partners will be responsible for managing the Property and making all necessary decisions.

Expenses

All expenses relating to the Property shall be split equally between the Partners. This includes but is not limited to property taxes, insurance, maintenance, repairs, and any other expenses related to the Property.

Income and Profits

All income and profits generated from the Property shall be split equally between the Partners. This includes rental income, proceeds from the sale of the Property, and any other profits made from the Property.

Sale and Dissolution

In the event that one Partner wishes to sell their share of the Property, the other Partner shall have the right of first refusal to purchase the share at fair market value. If the other Partner declines the offer, the selling Partner may sell their share to a third party. If both Partners agree to sell the Property, the net proceeds shall be split equally between the Partners.

Termination

This Agreement shall remain in effect until the Property is sold or one Partner wishes to dissolve the partnership. In the event of dissolution, the Partners shall arrange for the sale of the Property and the net proceeds shall be split equally between the Partners.

Conclusion

A property co-ownership agreement is essential to ensure a smooth and fair investment partnership. This sample agreement provides a framework that can be adjusted to fit the specific needs of the parties involved. It is important to seek legal advice before entering into any co-ownership agreement to ensure that all parties understand their rights and obligations.