Cottage Co-ownership, what you need to consider...
A husband and wife owning a property together is called Joint Tenancy, where if one person dies the other automatically receives title.
In the above situation the title to the property would pass to the deceased’s estate.
In other words the owner can choose who gets the ownership interest.
Tennant-in-common can be the simplest form of a sharing a property.
All of the co-owners are named on the deed and share in the mortgage costs.
There are many pitfalls to setting it up like this.
You want to be very careful as to who you are sharing ownership with.
Other forms that may be used are a Not-for-Profit Corporation, a trust or a partnership.
These are legal entities and must be set up as such.
The partnership can be setup quickly but the not-for-profit will take a bit longer because of government rules and regulations.
You need to consult a lawyer.
By now you should know the price of cottages!
Maybe you and your family think that these prices are out of reach for affordability.
Are thinking of buying with family or friends?
Pick a cottage and share the costs and use of the property to make it more affordable.
In others not so great!
You again need to plan and treat it like a business.
Have a BBQ, sit down with your family and/or friends and discuss the terms, conditions, usage, maintenance, and everything in between.
Your agreement should deal with everything you discussed and other things you may not even think are necessary.
Our page on co-ownership agreements is a great starting point for what needs to be considered.
There are risks without a proper structure in place.
For something as simple as making sure the place is clean, the dishes are done and the beds are made.
