Sharing Space, Protecting Interests: The Case for Co-Tenancy Agreements
Buying property has several advantages, including tax benefits. However, if you’re purchasing property with a friend or significant other and you’re not married, disputes could arise that put your investment at risk.
A co-tenancy agreement is a legal document designed to protect your interests and outline each co-owner’s rights and responsibilities. Key issues addressed include:
• Ownership Shares: Who owns what percentage of the property?
• Expenses: How are taxes, maintenance, and other costs divided?
• Use of the Property: How will co-owners use or occupy the property?
• Exit Strategies: What happens if one owner wants to sell their share?
These agreements don’t just prepare for future conflict; they provide clarity and help avoid uncertainty when challenges arise. Even if conflicts never occur, a well-drafted agreement ensures everyone’s interests are safeguarded.
For peace of mind and long-term success, consider calling BPS to draft a customized co-tenancy agreement tailored to you and your partner’s needs.