Are you in the process of co-owning a business or property with someone else? If so, it`s important to establish a solid co-ownership agreement to avoid potential conflicts and misunderstandings down the road.
To make things easier, we`ve put together a sample co-ownership agreement template that you can use as a starting point.
PARTIES
This agreement is made between [Party 1] and [Party 2].
PURPOSE
The purpose of this agreement is to formalize the co-ownership of [Property/Business Name] between the parties.
OWNERSHIP
The parties shall own [Property/Business Name] as follows:
[Party 1] shall own ____ percent (___%) of the property/business.
[Party 2] shall own ____ percent (___%) of the property/business.
OPERATIONS
[Party 1] and [Party 2] shall equally share the responsibilities and decision-making when it comes to the operation and management of the property/business. Any major decisions, such as the sale or restructuring of the property/business, shall require unanimous agreement from both parties.
FINANCES
Each party shall contribute their respective share of all property/business expenses, including but not limited to:
– Mortgage payments
– Property taxes
– Insurance
– Repairs and maintenance
– Utilities
– Any other costs associated with the property/business
A shared bank account shall be established for the purpose of managing these expenses. Each party shall contribute their respective share of funds to this account. Any expenditures from this account shall require approval from both parties.
DISPUTE RESOLUTION
If any disputes arise between the parties, they shall attempt to resolve them through mediation or other forms of alternative dispute resolution before seeking legal action.
TERMINATION
In the event that one party wishes to terminate their ownership in [Property/Business Name], they must give written notice to the other party. The remaining party shall have the first right of refusal to purchase the departing party`s interest on the same terms and conditions offered by a third-party purchaser. If the remaining party declines this opportunity, the departing party may sell their interest to a third party.
CONCLUSION
This sample co-ownership agreement template serves as a general guide for establishing a solid agreement between co-owners. However, it`s important to customize the agreement to fit your specific situation and seek legal advice before finalizing the agreement.
By establishing a clear and comprehensive co-ownership agreement, you can protect your interests and avoid potential conflicts in the future.