Questions About Multiple Real Estate Owners?
Modesto Co-Ownership Agreement Attorney Settles and Prevents Disputes
Co-ownership can be an effective solution for owning real estate. Unfortunately, whether you are purchasing a home or a business, property ownership disputes can happen. Without a co-ownership agreement attorney, you could face limitations to your options and rights. As a result, transferring or managing property can become difficult. Additionally, issues can stem from property improvements, expenses, consent and taxes. Since all of these issues can affect each other, it can be easy for tensions to rise concerning your joint property. Fortunately, a co-ownership agreement attorney can help promote a fair resolution, even if owners do not agree.
At Arata, Swingle, Van Egmond & Heitlinger we believe you deserve the chance to protect your investment, and we work hard to mitigate your costs and taxes. We work to lower costs with any property partition action. For example, we can help you draft and administer filing fees, title policies, survey fees and other ownership interests. By crafting a creative and well-thought-out joint ownership agreement, we can reduce your stress and maximize your investment. If you are preparing to purchase joint property or are in a dispute, we can help.
What Are Common Co-Ownership Disputes?
Since jointly owning real estate involves unique challenges, you should do everything you can to prepare yourself beforehand. Whether sharing property ownership with family or business partners, property disputes are a common occurrence. You can avoid future stress by identifying common issues that can cause problems and fixing them immediately. For example, in some cases, property co-owners do not enter into a formal agreement. If this is the case, you and the other co-owners enter what is called a “Tenancy in Common” (TIC). With a TIC, each co-owner possesses an equal right to possess the property.
Common disputes among property co-owners without an agreement involve:
- Transfers: In some cases, an owner may want to sell their interest. Usually, a co-owner has no obligation to sell their shares to you first. As a result, without a written agreement, a Petition to Partition will be sent to the court.
- Shared Expenses: Since property is shared, so are the associated costs. This includes maintenance, upkeep, insurance, HOA fees, utilities and taxes. If one of the property owners will not pay their share, he or she could face a legal dispute.
- Management Issues: Both residential and commercial property requires management. Disputes can happen between owners, service providers and/or contractors. For example, an owner may not approve of a contractor or manager, resulting in a dispute.
- Refusal to Compensate: Generally, rules are drafted regarding rent. Disputes can arise if an owner refuses to pay the agreed upon rent. Conversely, disputes can also stem from failing to compensate an owner who is not in possession of real property.
How Can Multiple Owners Disputes Be Prevented?
Fortunately, there are options available when drafting and administering an ownership structure to joint owners. As a result, you can avoid or solve property disputes early and easily. Agreements can take the form of a buy-sell agreement, partnership agreement or other contract. Generally, any of these agreements can prevent joint property disputes. You should contact a co-ownership agreement attorney for the best possible results.
There are some common measures that can prevent disputes between multiple owners, including:
- Establish a Formal Entity: Generally, establishing an LLC or a corporation can be advantageous for all owners involved. Through an LLC operating agreement or corporate bylaws, you can alleviate future problems by defining actions that are to be taken in specific situations.
- Buy-Sell Agreement: Co-owners can draft a legally binding document that defines parameters concerning the buying and selling of real estate. For example, if an owner dies, is divorced or chooses to sell, then a buy-sell agreement details the process.
- Co-Ownership Agreement: Generally, written agreements between co-owners control how property disputes are resolved. With a formal agreement, rights and obligations are clearly defined.
Joint Ownership Questions? Call for a Free Consultation
Investing in joint property can be a wise move. Unfortunately, no matter how close you are with your partners, disputes can happen. Even the best intentions, like property improvements, can result in frustration and tension. A co-ownership agreement attorney can mitigate risks while simultaneously maximizing your investment and potentially saving personal and working relationships.
If you have concerns about your agreement or need help drafting initial documents concerning joint property ownership, call our local Modesto attorneys. For over a decade, Arata, Swingle, Van Egmond & Heitlinger have resolved co-owner disputes and protected investments. We have the experience and resources to administer a fair agreement that works in your best interest. Further, we can provide counsel for any issues that may occur in the future. Call our firm at 209-522-2211 or contact us through our website today.