What is a Tenancy in Common Agreement Review?
A tenancy in common agreement is a legal contract that explains the shared ownership of a property by two or more parties. The agreement must cover terms such as parties’ financial duties and how decisions can be made.
If you need to review a tenancy in common agreement, read the rest of this article to explore core information to check, how to review the agreement for clarity, and how to hire a reputable lawyer for help with the process.
What Key Terms Should You Review in a Tenancy in Common Agreement?
When reviewing a tenancy in common agreement, there are specific terms to review. Here’s a rundown of some of them:
- Financial duties. The agreement should specify which party is responsible for maintenance, utility, mortgage, and other costs.
- Property. The property should be described so there’s no confusion over what the agreement covers.
- Decision making. Make sure the contract outlines processes for making major decisions, such as for repairs or managing the property.
- Exit. You want to ensure there’s clarity for what will happen if a party wants to sell their share and walk away from the arrangement.
- Distribution. Verify how rental income and profits will be distributed between parties.
- Ownership percentage. Ensure that the agreement confirms the owners’ percentages or share of the property.
What are Tips for Reviewing a Tenancy in Common Agreement?
A tenancy in common agreement review requires carefully checking all the details of the arrangement to prevent disputes. Here are some things to consider.
Check Use and Occupation
Since a property is covered by the agreement, the agreement should specify which party can occupy and use the property. If one owner has exclusive use of certain areas on the property, this must be included for clarity.
Verify Maintenance Duties
The agreement should clearly explain who is responsible for property repairs and maintenance. If an owner is allowed to alter or change the property, this must be defined.
Confirm Ownership
The owners’ percentage of interest in the property must be stated for accuracy and clarity. The agreement should include if ownership percentages match the owners’ financial contributions.
Scrutinize Financial Obligations
You should take a closer look at all clauses dealing with payments, such as utilities. Consider additional costs, such as legal or admin expenses. Defining how expenses are split between owners will help you to prevent a situation in which one owner takes on too much responsibility.
Consider Property Sales
If one owner wants to sell, the agreement should address this. It should consider if an owner can sell their share of the property independently, if unanimous consent from all owners is required, and how owners can navigate a situation in which they don’t agree on selling.
Provide Use Arrangements
Be thorough and as detailed as possible about how the property can be used. For example, the agreement should state if an owner is allowed to rent it out.
Just because ownership percentages have been specified, such as if there’s a 50/50 split, this doesn’t necessarily match the owners’ property use arrangement. Detail exactly how owners can use or live in the property with clear schedules.
Do You Need a Legal Review of a Tenancy in Common Agreement?
Getting a legal review of your tenancy in common agreement is recommended because the agreement tackles various aspects of the arrangement between owners. A lawyer will protect their interests and prevent disputes.
During a contract review, a lawyer will:
- Confirm the ownership structure. They’ll check that the agreement reflects the owners’ interests and that percentages are properly defined.
- Allocate expenses. A lawyer will ensure that all costs are fairly allocated, such as purchase costs, mortgage payments, insurance payments, and maintenance expenses.
- Clarify which party can occupy the property. They’ll consider what happens if one owner uses the property more than the other, providing clarity to prevent disagreements.
- Explain who can authorize spending. An example is if major repairs are required.
- Consider default provisions. If these aren’t included, a lawyer will add them to the agreement to establish what happens if one owner doesn’t meet their obligations.
- Define liability and insurance. A lawyer will determine who must maintain insurance coverage and how liability is allocated, such as for any damage to or injuries on the property.
- Flag any vague wording. A lawyer will identify any ambiguous wording and revise it so that all the agreement terms are specific and legally sound.
Where to Find a Lawyer for a Tenancy in Common Agreement Review
If you need a lawyer to review your tenancy in common agreement, you can easily find one on an online legal platform, which connects you to a network of lawyers who can review your contract and have the experience to match your legal requirements.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a curated network of lawyers who have been vetted on the platform. This gives you confidence that they’re reputable and professional.
Here is how to ask a lawyer on the platform to review your tenancy in common agreement:
- Go to the ContractsCounsel marketplace, where it’s free to post a request, or project.
- Select ‘One-time project.’
- Choose ‘Contract review.’
- Post your project. Mention some information about what you need so you can match with suitable lawyers.
- Wait for bids. Lawyers on the platform will send you bids on your project.
- Review the lawyer data. The platform provides information about lawyers, such as their location, field of expertise, credentials, years of experience, and client ratings for previous projects completed on the platform.
- Choose a lawyer to hire. They’ll review your tenancy in common agreement for a flat fee.
