A standard Property Co-ownership Agreement will provide both of you with the benefit of certainty around the process to be followed if:
- both of you wish to sell the Property;
- one of you wishes to sell and the other does not.
Typically the agreed framework deals with:
- arrangements for paying outgoings for the property, such as rates, insurance, ongoing repairs and maintenance;
- giving you the right to buy the other party’s interest if the other party wants to sell and you do not and, more importantly, allowing the other person a set amount of time (say 3mths, 6 mths or 12mth) to fund this buy-out (so they are not placed under undue financial stress due to actions/decisions of the other person);
- the expectations as to any other person (such as a spouse) residing at the property;
- reaching the sale/purchase price by agreement or having it determined as the average of 2 valuations if you cannot agree; and
- ensuring that you are reimbursed for any amounts you have paid over and above your registered interest in the property.
A further part of the Agreement can be the provisions which acknowledge that you have the right to continue to occupy the property as your principal place of residence (rent-free) for as long as you wish, regardless of the other party losing capacity and needing to relocate (as well as their death).
Read Part 2 in our Co-ownership series “Property Co-ownership Agreements Part 2: Why do you need one?”
If you wish to discuss your circumstances or would like to set up a Co-Ownership Agreement, contact our lawyers today at 13000 0686 736.