Sharing works best when everyone is on the same page …… or preferably a few pages. Cohabitation agreements are not just for couples.

With the changing real estate market and housing shortage it is becoming more and more common for people who are not in romantic relationships, and various family members to be sharing ownership of homes.

While this can be a great solution to the initial financial aspects of purchasing a home – it opens the door for other issues.

A Co-Habitation Agreement Sets Clear Expectations

In any circumstance when you are sharing ownership of a property it is a good idea to set up expectations and parameters for that to make sure you avoid disputes and surprises in the future.

Joint tenants vs tenants in common – do you want to own the whole thing together, and the last surviving owner owns the entire value of the property? Do you want to own “shares” that you can pass on to your children? How you hold title to a property has consequences for the future. (Learn more about Joint tenants vs tenants in common in our blog JOINT TENANTS OR TENANTS IN COMMON IN NOVA SCOTIA - WHAT’S RIGHT FOR YOU?)

Sharing expenses, repairs and other responsibilities – having an agreement that explicitly sets out sharing of expenses and other items about use can avoid major friction for sharing a home.

A Co-Habitation Agreement Can Outline What Happens if One Party No Longer Wants to Co-Habit

Disposing of the property and buyouts – what happens when one person wants out? In order to sell or refinance you need the consent of all the owners if you hold it jointly. If you have shares, you can only deal with your share – so would still need consent to sell.

Having an agreement in place puts everyone in a better position to go forward with confidence and eliminates stress (and possibly litigation costs) later on.

Learn more about the specifics that should be included in the Co-habitation Agreement itself in our blog HOW TO CREATE A LEGALLY BINDING CO-HABITATION AGREEMENT IN NOVA SCOTIA

By: Briana C. O’Grady - Lawyer

Have Questions For Us?:

If you have any questions about cohabitation agreements you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $500+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.

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