Shared purchase agreement: residential property between three or more owners
Where all the owners occupy the property at the same time
About this document
This agreement covers any situation where three or more people or sets of people share ownership and use of a house, flat, bungalow, cottage or other property for permanent occupation. The agreement is designed to regulate occupation where all the owners occupy the property at the same time and the property’s occupation is shared by area. This agreement is suitable not only for situations where, for example, each owner has the exclusive right to use a bedroom and shares the use of all other rooms, but also for virtual flats where, for example, each owner has the exclusive right to use a bedroom, living room, kitchen and bathroom and the only shared area is the entrance hall.
First, you should consider what the most suitable structure for your sharing proposal is. If you are looking at more than ten people, then it would be better to hold the property in a limited company and buy and sell shares in it. Ownership of the property itself never changes. No stamp duty is paid once it is bought.
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.
We offer two versions here. One is for a situation where only two parties share for example two individuals or two families. The other is designed for more than two parties. Links to other documents are available on the right of this one.
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. Such an interest is called a beneficial interest.
Application
and features
Comprehensive fractional ownership document for any type of property: flat, apartment, house, bungalow and so on
Sensible and practical provisions for shared ownership
Written in plain English
Explanatory notes to guide you
Contents
Terms of beneficial interest - beneficial trusts provision
Price and payment for the Property
How the parties will use the Property
How expenses will be paid
Who and how will manage payment of expenses
Undertakings by the parties
Alternative exit strategies
Effect of termination
What if someone wants to sell his share or sell the property
Many other legal provisions
Word
Count (approximate):
Document: 3160
words
Explanatory notes:
885
words
Draftsman
This is a Net Lawman drawn document. We also offer low cost legal advice. You can learn more and instruct us at Expert Legal Advice.
