There are many instances where people invest in a property jointly, be it for financial or other reasons. As co-owners, each then owns an undivided share in the property. It is always advised that buyers take the sound precaution to draw up a co-ownership agreement to regulate ownership, use and so on.
Buyers in this situation should bear in mind that no matter what they agree to with regards to the split in shares in the property, maintenance, occupation or income from the property, their agreement will not bind third parties such as banks or municipalities.
For example, the bank that grants the home loan will generally require that all co-owners agree to be ‘jointly and severally’ liable to repay the home loan. This allows the bank to recover the debt from all of the debtors in proportion to their shares or, if necessary, to recover the whole amount from any one of them. So, if one co-owner should fall on hard times or stop paying for any reason, the others will be required to make up the difference.
The same would apply to any municipal costs including monthly utilities and property taxes.
Buying property, especially as co-owners requires a good deal of research to ensure that you invest in a sound property, but also that you are aware of the risks of co-ownership and take the necessary precautions.
With over five decades in property, Seeff agents are your best bet. Be sure to ask a property professional at Seeff to assist before putting pen to paper.
Home is our Story and property our passion. As experts in your area, Seeff knows the property market and you are in good hands regardless of your property needs, so be sure to contact us today!
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