Co-Ownership
Co-owner agreements for houses in Canada are legal contracts that outline the rights and responsibilities of individuals who jointly own a property. These agreements are particularly important for friends, family members, or business partners who decide to purchase a home together.
There are two main types of co-ownership arrangements: joint tenancy and tenancy-in-common. In joint tenancy, each co-owner has an equal interest in the property, and if one owner dies, their share of the home goes to the other owner(s). In a tenancy-in-common arrangement, each tenant owns a portion of the property, which becomes part of their estate when they die.
Co-ownership agreements typically cover the following aspects:
Ownership share: The agreement should specify the percentage of the property owned by each co-owner. This can be equal or unequal, depending on the financial contributions of each co-owner.
Dividing of space and use: The agreement should outline how the living space will be divided among the co-owners and how it will be used. This includes the allocation of bedrooms, common areas, and outdoor spaces.
Dividing ongoing and one-off expenses: The agreement should detail how ongoing expenses such as mortgage payments, property taxes, and utilities will be shared among the co-owners. It should also specify how one-off expenses, such as repairs and renovations, will be divided.
Household chores, repair, and maintenance: The agreement should outline the responsibilities of each co-owner when it comes to maintaining the property, including tasks like cleaning, yard work, and minor repairs.
Decision-making process: The agreement should establish a clear process for making decisions related to the property, such as selling, refinancing, or making major renovations. This may involve a voting system or a requirement for unanimous consent.
Dispute resolution: The agreement should include a process for resolving disputes among co-owners, such as mediation or arbitration.
When entering into a co-ownership agreement, it is advisable to consult with a lawyer to ensure that the agreement is legally sound and protects the interests of all parties involved
