What is this agreement for?
If you own a house or flat and you share it with someone else who puts money into the property, you can give them a share in it with this co-ownership agreement.
You will still be the registered owner at HM Land Registry. But you will both have a beneficial interest. So, if you decide to sell, you will share the sale proceeds with your co-owner. The agreement will set out the arrangements.
See our document B133 if two registered owners want a similar agreement
What detailed terms does the Co-Ownership Agreement contain?
The document is a Declaration of Trust.. So, when they sign it, the registered owner and the other party become the joint owners of the beneficial interests in the property. The registered owner will remain on the Land Registry title . So, you do not need to change the ownership registration details at the Land Registry if the title to the property is registered.
The document covers
- definitions and interpretation
- payment of the investment sum
- declaration of trust
- liability for payment of the outgoings
- owner’s obligations
- entitlement to any income
- no assignment of a beneficial interest and new trust
- sale of the property
Two occupiers can use this agreement where the property is registered in the name of only one of them.
The agreement sets out the shares of ownership as well as income and expenditure. It also deals with the possible sale of the property and any mortgage.
If you want an agreement where the co-owners are all registered as owners of the property, here is a link to our other co-ownership template, document P133
If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form
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