Co-ownership agreements

If two or more people are considering buying a property together, we always recommend entering into a co-ownership agreement. Such an agreement is particularly relevant, for example, if parents are to own part of their child’s property, or if unmarried cohabiting partners are considering purchasing real estate together.

Without a co-ownership agreement, many challenges may arise if the cohabitation is later terminated or if, for other reasons, the co-ownership needs to be dissolved. This can make it difficult to sell the property and may also lead to disputes regarding the financial aspects of the property. Therefore, you should always consider a co-ownership agreement when deciding to acquire a property jointly.

WHAT IS A CO-OWNERSHIP AGREEMENT

A co-ownership agreement is a written contract between two or more persons that defines the co-ownership relationship, including the ownership shares of each party, as well as each party’s rights and obligations in relation to the property.

The agreement can regulate how costs related to the property are shared between the parties, as well as how any sale proceeds are to be distributed. A co-ownership agreement is particularly useful where one party has contributed more funds than the other at the time of purchase. Without such an agreement, the general rule is that any profit from a sale is divided equally.

A co-ownership agreement can also regulate how the co-ownership is terminated. This may be done either through a sale of the property or by one party taking over the property. In both cases, the agreement should specify how the process is to take place. In the case of a sale, for example, it may be stipulated that two independent real estate agents must assess the value of the property.

It is always a good idea to enter into a co-ownership agreement when purchasing property jointly, whether with a partner, family members, or friends, as this can help prevent future conflicts.

At KROMANN Law Firm, we can assist in drafting such agreements and advise you on how to best protect everyone’s interests.

We also have experience in both real estate transactions and the drafting of wills, allowing us to provide a comprehensive solution in connection with your property purchase. In this way, we ensure the legal position of all parties in the event of separation, disputes, death, or other circumstances.

CONTACT US TODAY

Call us at +45 8618 1102 or send an email to kontakt@advokatkromann.dk, and we will help you safely through all stages of your property transaction.

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