Co Ownership Agreement Sample Canada
Other names for the document: Residential Co-ownership Agreement, Declaration of Residential Tenancy in Common, Declaration of Residential Co-ownership, Declaration of Ownership of a Residential Property, Agreement of Sharing ownership of residential property The cohaallyation agreement (living together) defines residential arrangements, such as . B responsibility for invoices. You can use this document when a property is purchased by several friends or relatives together, when a property has been given to a number of people or relatives to own it together, or to formalize an existing condominium agreement. This document can be used to create the co-ownership of a property. It can be used and modified for up to four co-owners to reflect ownership in equal shares, fixed shares and variable shares to reflect each co-owner`s financial contribution to the property. The document also provides for a right of first refusal in favor of other co-owners if a co-owner wishes to sell his share. Depending on your relationship, you may also consider a prenuptial agreement or separation agreement to determine ownership of other assets. This agreement “separates” a flatshare and determines how the proceeds from the sale of a property are distributed among the owners. The agreement allows you to choose the property or make arrangements to change the proportions. For example, you may want a gradual increase in the proportion of a homeowner paying off a mortgage or a parent lender. This document does not contain any provision for the management of your property as it can become a public document. We cover management agreements in detail in other documents.
Look: Usually, your carrier will draw the document that transfers your property to you in words that make you “advantageous roommates.” This means that in law, the relationship between the co-owners of immovable property exists either as “beneficiary co-tenants” or as “co-tenants”. The term “tenant” has no connection with a tenant under a lease. In both types of rentals, a co-owner can insist on a sale. First of all, it “separates the flatshare” so that each owner has an identifiable share. It could be 50:50, or it could be a different ratio. This is legally valid, but does not change the already existing obligations, for example, who is responsible for repaying the mortgage. This document protects the individual interests of each owner. It does not cover property management.
It should be noted that this document creates a common tenancy. This means that co-owners can own the property in different proportions, as opposed to joint rentals where each party owns the property in equal shares. This also means that, unlike roommates, each co-owner`s share of ownership can be passed on as an inheritance upon death. On the other hand, it lays down the arrangements for distributing the proceeds from the sale of the property. Depending on the circumstances, this is legally binding between the owners, but may not be binding on a third party, such as a receiver. Only one copy of the document must be signed by all parties. Each signature must also be signed by a witness who is not one of the other co-owners. Each party should then keep a copy of the document for their records. .
