Example of Tenants in Common Agreement

Tenants in common agreement is a legal document that outlines the terms and conditions governing the ownership of a property by two or more individuals. This type of agreement is usually entered into when a group of individuals decides to purchase a property together, or when a co-owner wishes to sell their share of the property to someone else.

The tenants in common agreement is a crucial document that must be carefully crafted to ensure that all parties involved are aware of their rights and responsibilities. Here are some examples of key provisions that may be included in a tenants in common agreement:

Ownership shares: The agreement should clearly specify the percentage of ownership that each party holds in the property. For example, if three individuals purchase a property together, each may hold a 33.3% share.

Rights and responsibilities: The agreement should outline the rights and responsibilities of each co-owner, such as the right to occupy the property, the responsibility to pay taxes and insurance, and the right to sell their share of the property.

Contribution to costs: The agreement may specify how much each co-owner will contribute to the costs associated with the property, such as mortgage payments, repairs, and maintenance. This can be based on each owner’s percentage of ownership or on a different arrangement negotiated among the parties.

Dispute resolution: The tenants in common agreement should also outline how any disputes among co-owners will be resolved. This may involve mediation or arbitration and could be done with a third-party mediator.

Termination of agreement: The agreement should set out the circumstances under which the agreement can be terminated. This may include the sale of the property or the death of one of the co-owners.

Finally, it is important to note that the tenants in common agreement must be signed by all parties involved, and it may need to be notarized or registered with a government agency. Because this agreement forms the basis of the legal relationship between co-owners, it is essential to consult with a qualified attorney to ensure that it is comprehensive, accurate, and enforceable.