Tenant in Common Agreement Sample

If you`re planning on purchasing a property with another person or multiple people, it`s important to have a clear understanding of how ownership and responsibilities will be shared. One way to do this is by creating a tenant in common agreement.

A tenant in common agreement outlines the rights and responsibilities of each owner, including how ownership percentages will be divided, how expenses will be shared, and how decisions will be made. This type of agreement can be especially important in situations where there are multiple owners who may have different goals and priorities.

If you`re unsure of how to draft a tenant in common agreement, it can be helpful to look at a sample agreement to get a better sense of what should be included. Here are a few key elements that are typically included in a tenant in common agreement:

1. Ownership percentages: The agreement should specify how ownership is divided among the tenants in common. This may be based on the amount of money each person contributed to the purchase, or it could be divided equally among all owners.

2. Responsibilities: The agreement should also outline the responsibilities of each tenant in common, including who is responsible for paying for taxes, maintenance, repairs, and other expenses associated with the property.

3. Decision-making: If major decisions need to be made about the property, the agreement should specify how these decisions will be made. This could be through a majority vote, or it may require unanimous agreement among all owners.

4. Buyout terms: If one owner wants to sell their share of the property, the agreement should outline the terms of the buyout. This could include the process for determining the value of the share, as well as any restrictions on who can buy the share.

5. Dispute resolution: Finally, the agreement should include a process for resolving any disputes between the tenants in common. This could involve mediation or arbitration, or it could specify that any legal disputes will be resolved in a specific court.

Overall, a tenant in common agreement can help ensure that all owners are on the same page when it comes to the property, and can help prevent disagreements down the line. If you`re considering purchasing property with other people, it`s definitely worth taking the time to draft a clear and comprehensive tenant in common agreement.