Being a co-owner of a property is a fortuitous business in India. The potential co-owner of a property does not understand the future impact. In my previous speech, I stressed why it is important to mention the nature of joint ownership in concert. However, the inclusion of Joint Tenants or De Tenants in Common is more relevant if one of the co-owners has died. There are certain other clauses that should be included in the deed of sale in order to preserve your interests as co-owners. In some cases, it is not possible to include certain clauses in the deed of sale, because the seller or the bank opposes it (if you use a home loan). In such cases, you can, as a co-owner, sign a separate agreement listing all the mutually agreed terms. This agreement is a complementary agreement to the instrument of sale, although you do not agree to share it with the bank. In other words, it is the mutual understanding between the co-owners. There are financial benefits to making a joint purchase with pooled resources, but there are also potential pitfalls. If you`re buying a home with a Cobuyer, you should consult a Boston real estate attorney to help with the home buying process and the Cobuyer deal. Pulgini & Norton`s lawyers advise and represent clients in Braintree, Quincy, New Bedford and other Massachusetts cities. Call us at 781-843-2200 or contact us via our online form for a free consultation.
If everything goes well when buying your property, equity will be generated over time. Be sure to include in your condominium agreement a provision detailing when, if any, equity is taken from your property and how it is allocated. If your co-ownership agreement allows a repayment or a second mortgage, it is essential that the agreement also designates the owners who can continue to encumber the property. If your agreement provides for the sale of the property instead of refinancing, it should indicate when and how the property can be sold. The list is endless, but I tried to cover 5 main clauses based on my experience. As a co-owner, feel free to discuss issues/points that may cause heartburn in the future. You can list all these points and find amicable solutions. It is advisable to record them in the deed of sale. The problem in India is that we do not believe in open discussions.
The biggest casualty is the fate of the property in the event of a split/dispute. This division/dispute can take place between family members, business partners, friends, etc. To share an example from Mr. Akash. He bought a plot of land with his wife as co-owner. He paid 100% EMI to repay the home loan. Now he has filed the CPR against his wife following a marital dispute and his wife lives in another city. He stopped paying EMI, his wife refusing to share the burden, and the bank declared the property NPA. It is advisable that the husband and wife resolve the dispute to each other to avoid financial losses. A co-ownership contract can set the conditions for the purchase of land. Since the purchase is made by several people, it is a good idea to determine which parties are responsible for the mortgage and when those parties start looking for financing.
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