Joint ownership agreement: holiday property

A shared property purchase agreement suitable where generally only one owner occupies the whole of the property at any one time. Most suited where the owners use the property for holidays and weekend breaks.

Suitable for use in: England & Wales and Scotland
£42.00 inc VAT ( £35.00 ex VAT )
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About this document

This fractional ownership agreement covers any situation where two or more people share ownership and use of a house, flat or other property for holiday occupation. The agreements are designed to regulate occupation where only one owner occupies the whole of the property at any one time. However, there is nothing to prevent more than one owner occasionally using the property at the same time.

First, you should consider the most suitable structure for your sharing proposal. If you are looking at a commercial arrangement or one for more than ten people, then it would be better to hold the property in a limited company and buy and sell shares in it. Then ownership of the property itself never changes. No stamp duty is paid once it is bought as the right of occupation can be treated as a licence.

However, running a company does cost money, so between 2 and 10 owners it is a matter of preference as to whether you want the formality, expense and greater certainty of a company structure and shareholders agreement or the lower cost and comparative informality of an agreement like one of these.

In English (and other UK) law, the registration of ownership does not record the shares in which land (that is, property) is held. So if you own 60% and I own 40% we have to record that in some other document. If we do not do so, “the Law” will assume we own in the shares in which we contributed to the purchase price. This may or may not be the same thing. These Net Lawman agreements specifically record the shares. They also record shares which may be owned by someone who is not a registered owner. This is called a beneficial interest.

Application and features

  • Suitable for ownership and use of a house, flat or other property for holiday occupation;
  • Not suitable for a business letting, a lease of more than three months or a residential letting;
  • An all in one legal agreement - includes the declaration of trust (trust deed) as well as details about the sharing arrangement;
  • Comprehensive yet flexible – you edit out what doesn’t apply to you;
  • Complete with notes in plain English.

Contents

  • Terms of beneficial interest - beneficial trusts provision;
  • Price and payment for the Property;
  • How many people allowed into occupation at one time and who they may be;
  • Who and how will manage payment of expenses;
  • Management of the property;
  • Detailed management structure ordered by annual meetings of the owners, possibility of proxy voting, and more;
  • Undertakings by the parties;
  • Alternative exit strategies to allow for a share to be sold to a third party, after offering it to all other owners;
  • Effect of termination;
  • What if someone wants to sell his share or sell the property;
  • Other legal provisions to protect your interest;
  • Explanatory notes.
Draftsman

This document was written by a solicitor for Net Lawman. It complies with current English law.

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