Tenants in common agreement
This co-ownership agreement sets out the basis on which owners will own shares of a residential property. Use it either to separate out your joint interest or to set down different ownership shares, or both. Examples of situations in which you might use it include: if you are divorced or considering separation, or if you have bought a property with friends.
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Who should use this agreement
This agreement “severs” a joint tenancy, and sets out how the sale proceeds of real property will be split between the owners.
- You may be married or in a relationship, and want to know that if you separate, when the property is sold you will each get out what you have put in.
- You may be a couple, group of friends, brother and sister, or parent and child, buying a house together to get on the property ladder.
This is a simple agreement for owner occupiers. It is not suitable as the basis of a property venture for profit.
The law on co-ownership of property
In law, the relationship of co-owners of property is either as “beneficial joint tenants” or as “tenants in common”. The term “tenant” has no connection with a tenant under a lease. Under either sort of tenancy, a joint owner can insist on a sale.
Usually, your conveyancer will draw the document transferring your property to you in words that make you “beneficial joint tenants”. That means:
- You own the property equally.
- When you sell, the proceeds will be divided equally, even if one of you has contributed more in the meantime.
- If one of you dies, the other(s) automatically get his share - even if you are divorced or separated, and regardless of what you write in your will.
Most people want to change that.
About this tenants in common agreement
This agreement serves two purposes.
First it “severs the joint tenancy”, so that each owner owns an identifiable share. This could be 50:50, or it could be any other ratio. That is legally valid, but will not change pre-existing obligations, for example, who is responsible for repaying the mortgage.
Secondly, it sets out the arrangements for division of the proceeds of sale of the property. Depending on the circumstances, that will be legally binding between the owners, but may not be binding against a third party, like a trustee in bankruptcy.
The agreement enables you to choose the ownership proportions or make arrangements for changing the proportions. For example, you may want a gradual increase in the share of one owner who is paying off a mortgage or parent-lender.
After you have signed this agreement:
- Your shares in the property are separate in law, so that a creditor of one cannot take the share of the other too.
- When you sell, the net proceeds are divided in the shares you have agreed.
- If one of you should die, that person’s share will pass according to his will or intestacy.
This document covers ownership of the property. Our cohabitation (living together) agreement sets out living arrangements, such as responsibility for bills.
Agreement features and contents
- Comprehensive, allowing for many different splits of ownership
- Suitable for situations where there are up to four owners (the maximum allowed by law)
- Allows a joint tenancy to be ended and changed to a tenancy in common
- Assumes that the parties will live in the property together unless otherwise specified
The contents of the co-ownership agreement include:
- General terms and conditions
- Ownership of property
- Other appropriate legal provisions to protect your interests
This document was written by a solicitor for Net Lawman. It complies with current English law.
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By Ian Simpson 17 July 2014
I was impressed that as soon as i had paid for the document it was emailed to me within a few minutes so i could process it straight away.It was easy to follow and had everything i wanted in the document.
By Susannah Spencer 15 July 2014
I found the tenants in common agreement, self explanatory, clear and easy to follow - thank you for such a quick and easy service.
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Very thorough, informative, uncomplicated, self-explanatory and exactly what I required at the time.
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Satisfactory and straight forward to complete. Helpful back up service also provided.
By Trevor Dennington 23 October 2013
Excellent. And I have used it before some while back. The most important feature was to ensure its legality and therefore its effectiveness. I will benefit by using it to support my Will.
Yes, I would recommend Net Lawman to others and have done so many times.
By Matthew Scott 01 December 2015
The process of getting my downloaded document was very efficient. However, I was disappointed with the result. I have found free versions of the document on the Internet, more or less the same, and as a result, I feel like I've wasted my money as I was going by paying I would have something more sophisticated. Shame.
Net Lawman responds 04 January 2016
This is a very simple document with no "bells and whistles". We draw documents in plain English that are clear and comprehensible. If you prefer something written a hundred years ago, then by all means go for it.
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