Co-ownership can be a great way to share the cost of a property and divide responsibilities among co-owners. However, co-ownership also comes with legal obligations and responsibilities that all co-owners should be aware of.
Here are some of the legal aspects of co-ownership that you need to know:
1. Ownership agreement: It is essential to have a written co-ownership agreement that outlines the responsibilities and obligations of each co-owner. This agreement should cover issues such as how expenses will be divided, how decisions will be made, and what happens if one co-owner wants to sell their share.
2. Rights and responsibilities: Each co-owner has specific rights and responsibilities when it comes to the property. These may include the right to occupy the property, the responsibility to contribute to maintenance costs, and the obligation to obtain consent from other co-owners before making substantial changes to the property.
3. Selling a share: If one co-owner wants to sell their share of the property, they may do so, but the other co-owners have the right of first refusal. This means that they have the right to purchase the share before it can be sold to anyone else.
4. Dispute resolution: Co-ownership disputes can arise for a variety of reasons, including disagreements over property usage, maintenance, or sale.
Fractal acts as an administrator to protect the rights and obligations of all co-owners. The Fractal operating agreements are designed to set out the rules that govern the responsibilities of each of the co-owners and how to handle disputes should they arise.
Reach out to a Fractal expert to learn more here.