Getting into the real estate market is being considered very difficult for those who have been trying to purchase in the last six months or so. This is especially true for those who are looking to purchase in the Region of Peel. One of the most creative solutions to buy a house in this very competitive market, some found, is co-ownership. If you are thinking of this as another option to buy a house with the unattainable home prices, you need to understand what’s involved in the process.
Two individuals who are thinking of embarking on this journey; can be friends, relatives or even co-workers. Through combining their resources, they can afford to own a house. They would have to take the necessary steps to set up legal protocols and steps according to the situation. It is like an agreement they need to make just in case some things happen. Some are thinking to make co-ownership a trend, and they received a positive response from many people.
What’s Involved in the Process?
According to real estate lawyers, it is important for the co-purchases to sign a co-tenancy or co-ownership agreement, which is a legally binding document they must sign before purchasing a property. The agreement must indicate the percentage of the house that each individual will own. It must also include a plan on how the space will be used, who is responsible for maintenance and repairs and the exit strategies if someone defaults on the said agreement or if relationship breakdown happens.
A real estate attorney also stated that it must cover those important basics. The co-purchasers must sit down and think about how they want to structure the arrangement and formalize it in an agreement. Co-ownership takes a lot of trust from both parties.
Indeed, co-ownership is now becoming a new trend. Those who struggle into the housing market because of the difficulty involved in saving, and require assistance can embark on this new trend to be able to get into the market and purchase a home.