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subject: Points That Should Be Part Of A Home Co-ownership Agreement [print this page]

If you are already sure that you will get a co-buyer for the Elmhurst Real estate property you are eyeing to buy, better be certain that you will follow all the important steps to make all the process and results legal. Yes, having a co-buyer to help you finance one of those stunning Elmhurst Homes for Sale makes it less costly for you. But you also have to remember that there are still troubles that might come along the way. Actually, it can make the process more intricate because instead of just you, there is other name who will share the title with you. For you to avoid misunderstandings with your co-buyer, be it your friend, relative or colleague, make sure that the two of you will agree with all the important matters that may affect the decisions that the two of you are going to make. It is also a must to legalize all the settlements. Do not be contented with verbal agreements, that because you trust each other, you will not spend time making a black and white co-ownership agreement. You need to draft one and you have to include in that document all the important aspects that needs to be talked about in investment. Below, you can find major points that should be included in your co-ownership agreement:

1.Distribution of Property Shares

Before making a deal for the property, you need to talk to your co-owner first and decide how the two of you are going to divide the title. Would you divide it unequally, just like what is followed in the Tenants in Common (TIC) way of sharing? If you want to have equal shares, you can opt to get the Joint Tenants With Right of Survivorship (JTWORS), which permits a fifty-fifty sharing of the property. Clarify with your partner how much percentage will each of you get from the property. The approach to title-holding is important especially if one owner died or one of you decides to sell his or her shares.

2.Distribution of ongoing payment

Aside from the shares, you need to talk about the monthly payment both of you have to give for the house. This includes monthly mortgage, property tax, utility subscriptions, insurance bills, repair and maintenance expenses and many more. You have to put in the agreement how much would be the budget of each other for the expense. As a foundation for the computation, you can use the amount distributed by each of you for the down payment.

3.What if the other one wants to get out of the deal

It can be very complicated if one of you will decide to get out of your partnership. This is the reason why talking about issues like this is very essential during the process of creating the co-ownership agreement. You have to discuss how you will settle this kind of issue and put it in the agreement because when this problem actually happen, the staying owner does not have to give permission or refusal if the other seller really wants to get out and sell his or her shares. Make a provision in the agreement that if one owner wants to share his or her shares, the other owner can refuse it, regardless if it uses a TIC or a JTWORS approach.

by: Yesica Pedraza

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