Tenancy in Common Agreement

This Tenancy in Common Agreement is a legally binding contract between:

​[Party1.FirstName]​[Party1.LastName]​

​[Party1.Company]

Hereby known as the 'First Party', and

​[Party2.FirstName]​[Party2.LastName]​

​[Party2.Company]

Hereby known as the 'Second Party'.

The Agreement comes into effect [Document.CreatedDate], and relates to both parties' interest in the Property described below:

(Address of co-owned property)

_____________________

_____________________

_____________________

_____________________, hereby known as the 'Property'.

The Agreement details the terms of the relationship between the Co-owners and their responsibilities for the Property.

Both parties agree to the following terms:

1. OWNERSHIP

1.1 The Co-owners, as tenants in common, will both hold the title of Property based on their respective interests, as laid out below:

First Party: ______%

Second Party: ______%

1.2 Appreciation or depreciation of the Property will be shared between Co-owners in proportion to their interest.

1.3 Both parties will share any net profits and losses from the Property during their Agreement on a pro-rata basis unless otherwise agreed upon in writing. This share will be divided by their held interests in the Property.

2. CHANGES AND IMPROVEMENTS OF PROPERTY

2.1 Should either party wish to change or improve the property, both parties must vote on the decision about the terms set out in Section 7 of this Agreement.

3. TRANSFERRING OWNERSHIP & RIGHT TO PURCHASE

3.1 In the event of one Party intending to sell or transfer their interest in the Property (the "Seller"), the Seller must provide a written Transfer Notice to the Continuing Party.

3.2 Should this transfer be to a third party, the Seller must provide details to the Continuing Party of the Purchaser, price and any other material terms agreed by the Seller.

3.3 The sale must be completed within 180 days from the receipt of the Transfer Notice.

3.4 Upon receiving a Transfer Notice, the Continuing Party has the first choice to choose to buy the Seller's interest in the Property in full. This purchase will be for the price noted in the Transfer Notice (unless otherwise agreed by the Seller and Continuing Party). The Continuing Party cannot choose to purchase only a portion of the Seller's interest.

3.5 Notice of purchase from the Continuing Party must be provided within 30 days of receiving the Transfer Notice.

4. TERMS OF TRANSFER

4.1.1 Should either party wish to transfer their interests in the Property to the Continuing Party or a Third Party, the following terms will apply:

4.1.2 The Continuing Party/Third Party will become responsible for all obligations of the Seller effective from the transfer completion date.

4.1.3 The Continuing Party/Third Party will pay the full price of the Seller's interest in the Property by cheque (or other payment option agreed in writing) to the Seller prior, to or on the completion date.

4.1.4 All parties will ensure that all transfer documents and duties are re-registered in the name of the Continuing Party/Third Party.

4.1.5 If the Seller transfers their interest in the Property to a Third Party, the Third Party will enter into a Tenancy in Common Agreement with the Continuing Party and shall uphold the Seller's obligations of the pre-existing Agreement.

5. BENEFITS AND LIABILITIES

5.1 Both Parties within this Agreement will be entitled to all benefits regarding the Property on a gross basis. This includes all streams of income, revenue and proceeds from a sale or refinancing of the Property. This entitlement will remain in proportion to their interest in the Property.

5.2 Both Parties within this Agreement will be liable for all expenses relating to the ownership of the Property, in proportion to their interest. These expenses include but are not limited to the operating costs of the Property and the expenses of the sale or refinancing process.

6. ADDITIONAL TRANSFER CONDITIONS

6.1 In the unfortunate event of the death of one Party, the Party's interest in the Property will be transferred to an executor, trustee, or personal representative. Additional terms of transfer may be specified in the will of the Party.

6.2 Both parties are entitled to transfer their interest in the Property to a personal representative at any time.

6.3 The terms of these transfers will follow those outlined in Section 4 of this Agreement.

7. VOTING & DISPUTES

7.1 Co-owners will vote on all matters that arise regarding the Property. Voting weight will be directly proportionate to each Party's share in the profits or losses by their interest in the Property.

____________________________

____________________________

7.2 Both Parties shall attempt to resolve any disputes amicably and in good faith prior to serving court proceedings.

8. PARTNERSHIPS OR AGENCIES

8.1 This Agreement does not constitute a partnership between the Co-owners. Nor does it label either Party as an agent of the other Party, regardless of which Party has a larger interest in the Property.

8.2 Neither Party shall enter into a contract with a Third-Party agent unless otherwise agreed in writing.

9. TERMINATION OF AGREEMENT

9.1 This Agreement will continue indefinitely until a full sale of the Property has been completed, or if termination is mutually agreed upon by both Parties.

10. AMENDMENTS

10.1 Any amendments or variations to this Agreement must be served in writing and signed by both Parties.

11. NOTICES AND SERVICES

Written notices or amendments should be served by hand, via email, or through the post. All other formats will constitute as unofficial unless otherwise agreed by both Parties.

Notices served by post must be addressed to either party at the following addresses: