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  1. #1

    Default Contracts for Co-Owners of Property

    Hi,

    Along with a few friends, I am thinking of purchasing a piece of land and building a camp. I'm wondering if there are any pre-made packages for these types of arrangements or if a lawyer is even required? If we come up with a list of conditions and all sign off on it, does that pass muster on the off chance some dispute arrives down the road?

  2. #2
    Join Date
    Jan 2006
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    38,170

    Default Re: Contracts for Co-Owners of Property

    anytime..and I mean ANYTIME there is more than one owner to a property, nothing will prevent all possible problems in the future.

    You should speak with a lawyer for a variety of reasons including how to attempt to construct an agreement that attempts to do what you want. Even the best constructed agreements can be subject to challenge or even basically unenforceable in some situations.

    I don't know what you mean by "a camp" but if it involves anybody outside your group, you might look into creating an LLC or some other business structure that would help you avoid any personal liabilities for the camp.

  3. #3

    Default Re: Contracts for Co-Owners of Property

    Quote Quoting jk
    View Post
    anytime..and I mean ANYTIME there is more than one owner to a property, nothing will prevent all possible problems in the future.

    You should speak with a lawyer for a variety of reasons including how to attempt to construct an agreement that attempts to do what you want. Even the best constructed agreements can be subject to challenge or even basically unenforceable in some situations.

    I don't know what you mean by "a camp" but if it involves anybody outside your group, you might look into creating an LLC or some other business structure that would help you avoid any personal liabilities for the camp.
    That's the thing, I realise nothing will ever cover all possibilities. At the end of the day, none of us are particularly worried about it. We're all easy going, low maintenance guys. We were all good friends in university and get together a couple times per year ever since (that's 18 years now). We can purchase the land and build the camp for around $4000 - $5000 each. Really the only type things we want to cover off is things like if one person dies or one wants out or someone else wants in or say one member gets divorced...those types of things. We aren't talking a mansion or big money (heck none of us wants plumbing or electricity). Just want to make sure little things are set out in stone.

  4. #4
    Join Date
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    38,170

    Default Re: Contracts for Co-Owners of Property

    How you own the property will make a difference. If you own it jointly with rights of survivorship, as a person dies, their share will transfer to the remaining owners. You would have to "renew" the title in such a manner with each death. If you hold it as tenants in common, the decedents share, unless there is a will stating otherwise, will go to his heirs. Even with a will, if his estate owes creditors, it jeopardizes the property.

    If any of the owners has problems with a creditor, it is difficult to protect the property completely. An LLC or a trust would help in that situation but there are problems and costs involved with an LLC or a trust too.

    What happens if one guy decides to get pissed off and wants out for more than the others are willing to pay him? Research; suit to partition. It can get ugly.

    what happens if one of the guys trashes the place or decides to have a biker gang over for the fun of it and the others don't want that?


    I would still suggest setting down with a lawyer who can give you a more accurate picture of the benefits and pitfalls of the many ways you could do this. There are some serious problems with any method of ownership.


    We were all good friends in university and get together a couple times per year ever since (that's 18 years now).
    Ya, the Beatles got along pretty well until Yoko Ono showed up too which, strangely enough was about 18 years after the creation of the Band.

  5. #5

    Default Re: Contracts for Co-Owners of Property

    Quote Quoting jk
    View Post
    How you own the property will make a difference. If you own it jointly with rights of survivorship, as a person dies, their share will transfer to the remaining owners. You would have to "renew" the title in such a manner with each death. If you hold it as tenants in common, the decedents share, unless there is a will stating otherwise, will go to his heirs. Even with a will, if his estate owes creditors, it jeopardizes the property.

    If any of the owners has problems with a creditor, it is difficult to protect the property completely. An LLC or a trust would help in that situation but there are problems and costs involved with an LLC or a trust too.

    What happens if one guy decides to get pissed off and wants out for more than the others are willing to pay him? Research; suit to partition. It can get ugly.

    what happens if one of the guys trashes the place or decides to have a biker gang over for the fun of it and the others don't want that?


    I would still suggest setting down with a lawyer who can give you a more accurate picture of the benefits and pitfalls of the many ways you could do this. There are some serious problems with any method of ownership.


    [COLOR=#333333] Ya, the Beatles got along pretty well until Yoko Ono showed up too which, strangely enough was about 18 years after the creation of the Band.
    I hear you on the potential problems, though I'm definitely not worried about biker gangs and damage. If anyone is going to damage it, that would be us as a group, given the nature of some of our parties. Likewise not too worried about the Beatles scenario. Most of us are of the nature that if someone wanted to be an idiot, we'd just leave and cut losses. Why waste your time? Life's too short to get bogged down in pettiness.

  6. #6
    Join Date
    Jan 2006
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    38,170

    Default Re: Contracts for Co-Owners of Property

    ra-ra-rasputin;639343]I hear you on the potential problems, though I'm definitely not worried about biker gangs and damage.
    I was being a bit rhetorical for effect.


    Likewise not too worried about the Beatles scenario.
    that was an ironic coincidence.

    Most of us are of the nature that if someone wanted to be an idiot, we'd just leave and cut losses. Why waste your time? Life's too short to get bogged down in pettiness.
    It sounds great now but people and their situations change as life goes on.

    I understand your thoughts here. They are no different than thousands of people who have done similar things. Some work out just fine. Some end up with a bunch of people hating each other. Just trying to open your eyes a bit.

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