Pros and Cons of Acquiring a Real Estate With a Co-Owner
Thursday, April 8, 2010
Do you think it is alright to acquire and own a property with a concurrent owner? An arrangement of this kind may be acceptable, but do you believe that there will be no problem with this kind of arrangement? Acquiring a real estate can be considered a lifetime investment, more so,
if it is a parcel of land, as land does not depreciate, but its value appreciate instead as times go by. Before entering into an arrangement as this, one should first weigh the pros and cons that goes with committing into this kind of ownership.
Real estate ownership with a co-owner can be good to somebody who cannot afford to buy a whole property at first, because the monetary consideration would be lower if it is shared with another person. But if you will think ahead, you would realize that because you are not the sole owner of the property, you cannot do anything with the property as you wish.
Anything you plan and intend to do with the property should be consulted first with the co-owner. You may not foresee the problem of acquiring a property with a co-owner at the early stage, but sooner or later, when you wanted to make some improvements to the property or even think of make use of the property for income purposes, you will then realize that your rights and options is limited concerning the property, more so when the time comes that you want to transfer the ownership of the real estate or when you want to dispose of it.
Specific rules dictates the in and out of this concurrent ownership, specifically in tenancy. Say you built a building or any form of structure on the lot which you intend for tenancy, with the permission of your co-owner, do you think your co-owner would just easily agree not to have a share in the rental of the said building
when it is occupying the lot which he or she is also the owner, considering that whatever revenues and government monetary obligations concerning the real estate would be equally shared by the co-owner with you being another co-owner with the same capacity and authority over the common property. Both co-owners have an equal right to possess or use the entire property, and that the income or maintenance costs of the real estate should be shared equally
A co-owner can transfer interest in the ownership of the property in common to another buyer or to an heir, through a will. Also a co-owner can also mortgage a share in the property, but as co-owner, transfer or sell the other co-owners' interests in the property is not feasible. If the co-owner's right in the property in common is transferred, the new co-owner will take the role of the co-owner seller and becomes a co-owner in common with the other co-owner. What arrangement and agreement the former co-owner has with the other co-owner will be carried over with the new co-owner.
James is an expert in writing about legal forms and documents that may help you when your in the search of the right legal document. He writes many articles about forms ranging from, power of attorney forms, landlord tenant forms, and most any legal form that you are searching for.
if it is a parcel of land, as land does not depreciate, but its value appreciate instead as times go by. Before entering into an arrangement as this, one should first weigh the pros and cons that goes with committing into this kind of ownership.
Real estate ownership with a co-owner can be good to somebody who cannot afford to buy a whole property at first, because the monetary consideration would be lower if it is shared with another person. But if you will think ahead, you would realize that because you are not the sole owner of the property, you cannot do anything with the property as you wish.
Anything you plan and intend to do with the property should be consulted first with the co-owner. You may not foresee the problem of acquiring a property with a co-owner at the early stage, but sooner or later, when you wanted to make some improvements to the property or even think of make use of the property for income purposes, you will then realize that your rights and options is limited concerning the property, more so when the time comes that you want to transfer the ownership of the real estate or when you want to dispose of it.
Specific rules dictates the in and out of this concurrent ownership, specifically in tenancy. Say you built a building or any form of structure on the lot which you intend for tenancy, with the permission of your co-owner, do you think your co-owner would just easily agree not to have a share in the rental of the said building
when it is occupying the lot which he or she is also the owner, considering that whatever revenues and government monetary obligations concerning the real estate would be equally shared by the co-owner with you being another co-owner with the same capacity and authority over the common property. Both co-owners have an equal right to possess or use the entire property, and that the income or maintenance costs of the real estate should be shared equally
A co-owner can transfer interest in the ownership of the property in common to another buyer or to an heir, through a will. Also a co-owner can also mortgage a share in the property, but as co-owner, transfer or sell the other co-owners' interests in the property is not feasible. If the co-owner's right in the property in common is transferred, the new co-owner will take the role of the co-owner seller and becomes a co-owner in common with the other co-owner. What arrangement and agreement the former co-owner has with the other co-owner will be carried over with the new co-owner.
James is an expert in writing about legal forms and documents that may help you when your in the search of the right legal document. He writes many articles about forms ranging from, power of attorney forms, landlord tenant forms, and most any legal form that you are searching for.
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