When two or more people wish to become co-owners of a property, they often establish a written ownership agreement that expresses the terms of the agreement. A property contract often covers real estate, but may also apply to valuable personal property such as racehorses, coin collection or artwork. As long as the parties are elderly, healthy and do not include illegal or unscrupulous conditions in the agreement, they can generally negotiate the terms as they see fit. The concept of a property contract is complete and can be categorized in many classifications. In this context, it is a plan of a general ownership agreement covering all categories that belong to it. We will answer the question: what do you put in this agreement? And what is the meaning of each section? Read on to find out: If you own a property and want to hire a company or an individual to manage it, you need this agreement. If you work as a management company, you also need this contract to protect your business. Fundamental aspects that should be addressed in this agreement: the parties are currently parties to the property management contract (the «administrative arrangement»). (the «manager») is the only property manager acting on behalf of the parties for the management, operation, maintenance and leasing of the property for the duration of the administrative agreement. Negotiate the terms of the ownership relationship with the other parties.
Although the terms and conditions vary depending on the circumstances, you must decide at least the amount of capital each party will invest, the percentage of ownership and profit of each party and who manages the property and who is responsible for the maintenance. Include the purchase price of the property and the distribution of capital for the purchase of the property. For example, if there are three parties to the agreement, one party can invest 50 per cent of the purchase price, while the other two parties each invest 25 per cent. Specific conditions for the termination of the contract are recorded in the later section of the contract. This includes the different situations that can arise when a co-owner violates the purposes of the contract. It is just as important to have terms of termination of the contract as it is to encourage the performance of the contract. The application of this type will protect the parties concerned in the event of a disagreement in the future due to an infringement. Keep in mind that this agreement is a legal document that is under the control of state laws used to interpret them. Our lawyers are very experienced in this area and can help you and your partner reach an agreement if you move in together or if you already live together. Use this contract to define responsibility for the management of the property to avoid any misunderstandings.
With excellent communication, there is less chance of arguing unnecessarily and there are more benefits for all residents, because the building is better maintained. Commercial property management agreements require the building owner to take out general commercial liability insurance.