A tenants in common agreement is a legal contract that outlines the terms and conditions of two or more parties who are sharing ownership of a property, such as real estate or other types of assets. In this type of arrangement, each party owns a certain percentage interest in the property, and they may sell or transfer their portion of the interest to other parties.
This Agreement was entered into on [Document.CreatedDate] by and between [Sender.FirstName] [Sender.LastName] ("Owner"), and [Client.FirstName] [Client.LastName] ("Tenant") is to establish the terms and conditions under which the parties shall share ownership of the property located at [Sender.StreetAddress] , [Sender.City] , [Sender.PostalCode] .
Under this agreement, each party will own a percentage interest in the property under the following ownership interests:
Define the term of the agreement and explain whether it will automatically renew at the end of this period.
The term of this Agreement will begin on [Document.CreatedDate] , and last for one year. At the end of this initial term, the Agreement will automatically renew for an additional year unless either party notifies the other in writing at least 30 days before the expiration date.
Mention any expectations or requirements that the Owner may have regarding maintenance and repairs to the property. State who pays for these costs.
The Owner shall be responsible for all maintenance and repairs on the property and may bill the Tenant for any costs associated with these activities. The Tenant will make all payments to the Owner on time. These payments will be calculated based on the Tenant's percentage.
Explain how the parties will pay or divide taxes and other expenses.
The parties will divide the taxes and other property ownership expenses between the parties following the percentage interests outlined above. These expenses will be paid every quarter, and the Owner will provide the Tenant with an itemized statement of all costs incurred each quarter.
If any disputes arise regarding the management of or ownership rights in the property, they will be settled through mediation to be conducted by a neutral third party. Either party may terminate this agreement at any time with (insert number) days' written notice.
Neither party may transfer their portion of the property to another individual or entity without the other party's consent. If one party wishes to sell or otherwise transfer their interest in the property, they must first notify the other party in writing and provide them with an opportunity to purchase this interest at a fair market value.
The Owner shall make a one-time capital contribution of $(insert amount) to the property, which will be applied towards any future expenses related to ownership and maintenance. The Tenant shall contribute $(insert amount) towards these costs annually. This Agreement constitutes the entire understanding between the parties regarding their rights and responsibilities concerning the property and may only be modified or terminated in writing.
In addition to the other terms outlined in this Agreement, both parties also have the right of first refusal to purchase any portion of the property being offered for sale by the other party. If either party expresses an interest in purchasing this part of the property, they must do so within a specified timeframe and at a fair market value mutually agreed upon by both parties. If the party declines to purchase this portion of the property, it may then be sold to an outside buyer at the owner's discretion.
Either party may terminate this Agreement at any time by providing written notice to the other party. If one party wishes to end this arrangement, they must give at least 30 days' notice in advance of their desired termination date. If the other party wishes to continue sharing ownership of the property, they must acknowledge and agree to the termination in writing. Otherwise, this Agreement will remain in effect until the agreed-upon termination date has passed.
Both parties agree to the abovementioned terms and will share ownership of the property under their respective interests. They also acknowledge and agree to all rights of first refusal and termination outlined in this document. By signing below, both parties confirm their understanding and agreement to all terms herein.
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Two or more individuals or entities can get a tenants in common agreement, as long as all parties agree to the terms and conditions outlined in the document. This ownership arrangement is often used for investment properties, where multiple investors pool their resources to purchase and manage a single property. Family members or close business partners can also use a tenants in common agreements to share ownership of the real estate.
There are several key advantages to being tenants, including shared ownership of the property and the ability to pass down this interest to heirs or other beneficiaries. Tenants in common may choose their method for managing and maintaining the property and may sell or transfer their portion of the property without needing consent from the other party. This type of agreement may also make obtaining financing for the property easier, as each party will be considered individually responsible for their share of the costs and obligations.
A tenants in common agreement is a legal contract used to establish the shared ownership of property between two or more individuals. This type of agreement typically allows co-tenants to split the costs and responsibilities associated with maintaining and managing the property while also providing flexibility for transferring ownership to heirs or other beneficiaries as needed. A Tenants in common agreement may make it easier to get financing for the property, as each party will be considered individually responsible for their share of costs and obligations.
First, identify the individuals who wish to share property ownership. This may include family members, business partners, or other individuals with a financial interest in the property. Next, outline any specific terms or conditions that apply to this agreement.
These may include any details about financing for the property, maintenance, and management requirements, or rights to sell or transfer ownership. Finally, you will need to sign and date the agreement, typically in the presence of a notary or legal representative. This final step will help to ensure that your tenants in a common agreement are legally binding and enforceable.
A tenants in common agreement outlines the rights and responsibilities of the co-owners of a property. The parties specify conditions such as the percentage of ownership and the responsibilities for property upkeep in this agreement. A tenants in common agreement may also outline the terms for selling or transferring ownership rights of the property. Stating the terms in a written agreement helps clarify the rights and responsibilities of each co-owner to prevent conflicts later. This agreement also protects your rights if you are the sole property owner and want to sell or if you purchase a property with other individuals.
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