If you are looking to purchase a property with someone else in Ontario, you may be considering a Tenant in Common Agreement. This type of ownership allows two or more individuals to own a property together, while also having distinct, separate interests in the property.
A Tenant in Common Agreement is a legal document that outlines each individual`s share in the property and their respective rights and responsibilities. This agreement is especially important in the event of a dispute or if one of the tenants wishes to sell their share of the property.
In Ontario, a Tenant in Common Agreement should be drafted with the assistance of a lawyer to ensure that it meets the requirements under the law. The agreement should also clearly state the purpose of the property, the share of ownership of each tenant, and the terms and conditions of the agreement.
Additionally, the agreement should address important factors such as maintenance, repairs, and improvements to the property. Each tenant should be responsible for an equal share of the expenses related to the property and the agreement should outline how these expenses will be divided.
It is also important to address what happens if one of the tenants wishes to sell their share of the property. The agreement should include provisions for both selling the property as a whole or for one tenant to buy out the other tenant`s share.
Lastly, the agreement should outline the process for resolving disputes between the tenants. This can include mediation, arbitration or court proceedings.
In summary, if you are considering purchasing a property with someone else in Ontario, a Tenant in Common Agreement is an important legal document to protect your investment. Be sure to seek the assistance of a lawyer to ensure that your agreement meets all the requirements under the law and fully protects your interests.
