Joint Ownership Agreements
Unless you are a married couple, a joint ownership agreement is absolutely critical when collaborating with others on the purchase of property. Crafting a solid contract is essential to establishing the relationships among the owners, safeguarding your individual interests, and protecting the value of the property itself. A joint ownership agreements lawyer can assist with negotiations and drafting the necessary documents, so please contact the Law Office of Kristina M. Reed to discuss your objectives. You may also find it helpful to read an overview of how these contracts work.Legal Protections of Joint Ownership Agreements
A joint ownership agreement enables owners of property to describe how they will purchase, finance, maintain, and potentially sell it. It is similar to many other types of contracts in that it defines the rights and responsibilities of each party. A joint ownership agreement may also include provisions regarding what happens in the event that someone breaches the terms.
The primary provisions of a joint ownership agreement will identify the parties and describe the property to be purchased by the parties. Financing will be essential for many purchase transactions, so the contract must specify the details on obtaining funds. The joint ownership agreement should also be clear in the timeline for each step involved with acquiring the prospective property.
Another consideration in crafting a joint ownership agreement is designating how the parties take ownership, such as:
- Joint Tenants in Common: Each person owns the property separately, and can dispose of it through a sale, mortgage, estate plan, or other method.
- Joint Tenants with Right of Survivorship: Parties own an undivided interest in the property as a whole. Upon the death of one owner, the share reverts back to the other joint tenants as co-owners.
In addition to the basic terms and legal protections, there are other factors to consider when structuring a joint ownership agreement. Attorney Reed can provide advice on such issues as:
- Establishing ownership percentages;
- Describing the parameters of the purchase price;
- How the parties are allowed to use the property;
- Whether subletting is allowed;
- Division of costs for taxes, insurance, utilities, maintenance, improvements, and other expenses;
- Obligations regarding upkeep, cleaning, and maintenance;
- Exit strategies when one owner wants to terminate the arrangement;
- How shares and value are calculated;
- Handling owner death, divorce, disability, or other factors; and,
- Other considerations that affect the relationships between and among co-owners.
It is also important to include provisions on dispute resolution, as foresight can save all joint owners time and money. One option to consider is requiring mediation before any party can file a lawsuit in court. Through mediation, it may be possible to resolve disagreements and avoid the expense of litigation.Consult with a Sacramento, CA Business Attorney on Joint Ownership Agreements
If you have additional questions about the benefits and structuring of joint ownership agreements, please call the Law Office of Kristina M. Reed. Our team can schedule a consultation to review your circumstances, discuss your objectives, and deliberate strategies to achieve your goals. You can reach our Sacramento, CA office by calling 916-492-6033 or going online to learn how a joint ownership agreements lawyer can help.