TENANTS IN COMMON AGREEMENT
(Vacation / Investment Property)
THIS DEED made effective as of the ______ day of _____________________, _________ (hereinafter referred to as the "Agreement") BY AND BETWEEN the parties as stated in Schedule 1 attached (hereinafter referred to as the "Co-Owners"), which is made a part of this Agreement as fully as if it were set forth herein, together with their executors, agents, administrators, mortgagees-in-possession, successors, and permitted assigns. WHEREAS the Co-Owners agree as follows: A. Each Co-Owner is, or is entitled to become, registered as a proprietor in the land as hereinafter described (hereinafter referred to as the "Property") as tenants in common in their respective proportions as set out in Schedule 2 attached hereto, which is made a part of this Agreement as fully as if it were set forth herein. Each Co-Owner shall have the exclusive use and occupation of the Property for the entire time period as set out for each Co-Owner in Schedule 3 attached, which is made a part of this Agreement as fully as if it were set forth herein. Each Co-Owner shall have a say in all matters concerning the Property as proportioned in Schedule 2 herein (hereinafter referred to as the "Proportion").
B.
C.
NOW THEREFORE the Co-Owners have agreed to record and register their various rights and obligations in respect of the Property as set out in this Agreement at the Land Titles Office. THIS DEED WITNESSES: 1. Property Description
The Property is legally described as follows: ____________________________________ ____________________________________ ____________________________________ (insert legal description) and has the following street address: ____________________________________ ____________________________________ ____________________________________ (insert street address) 2. Property Use
2.1 Subject to compliance with the terms, conditions, and provisions of this Agreement, any lessee, mortgagee, licensee or other individual who is authorised by a Co-Owner entitled to an exclusive use of the Property shall then also be entitled to the exclusive use and occupation of the Property subject to their compliance with the terms, conditions, and provisions of this Agreement.
-22.2 If there are time periods where the Property is not in exclusive use by the Co-Owners, the Property shall be made available for rental during such time periods. Any net income (being the income after the deduction of the Managing and Letting Agent's reasonable overheads and commissions) from such rental shall be shared by the Co-Owners severally as their Proportion dictates. 3. Common Property
The common property shall be the Property as well as all fixtures, fittings, window & floor coverings, furnishings, utilities and any balcony, yard, or garden included with the Property. 4. Utilities
Any existing utilities which exclusively service the Property during a period of a Co-Owner's exclusive use of the Property shall: (a) (b) 5. remain in their position at all times; and be maintained by the Co-Owner during the exclusive use of the Property at the CoOwner's sole cost and expense.
Property Maintenance
5.1 The Co-Owners shall jointly maintain the Property or contribute to the maintenance of the Property as their respective Proportion dictates. 5.2 The Co-Owners shall appoint a Management and Letting Agent for the Property as stated in Schedule 4 attached, which is made a part of this Agreement as fully as if it were set forth herein. 6. Insurance
The Co-Owners shall obtain and maintain public liability insurance for the Property no less than ______________________________________ (insert amount in words) dollars through an insurance agency as agreed to by a two-thirds (2/3) majority, as based on the Proportions, of the Co-Owners. Such insurance shall be paid for equally by all Co-Owners of the Property as their respective Proportion dictates. 7. Common Costs
7.1 The Co-Owners shall pay when due and as their Proportion dictates, all common general costs for the Property including but not limited to water rates, land tax, public liability insurance, body corporate levies, council rates, and maintenance fees. 7.2 If a Co-Owner does not pay, when due, any of the common general costs as stated in section 7.1 herein, another Co-Owner may, at his sole discretion, pay such common general costs in full. The CoOwner paying the costs of behalf of the non-paying Co-Owner, shall receive from the non-paying CoOwner, within a reasonable time frame, the amount so paid. The Co-Owner who paid the costs on behalf of the non-paying Co-Owner shall have the right to charge interest on the amount paid at a rate of _______ % (insert number) per annum. Such interest shall apply from the date on which the Co-Owner originally paid the costs until the date of actual payment by the non-paying Co-Owner. 8. Capital Injections
8.1 If the Co-Owners, by a two-thirds (2/3) majority, as based on their Proportions, decide that the Property requires an additional capital injection for reasonable repairs or operating expenses, all CoOwners of the Property shall make equal contributions pro rata to the Proportion held. 8.2 If any Co-Owner does not or is unwilling to pay or cannot obtain financing for the required amount, then one or more other Co-Owners may loan the non-paying Co-Owner the shortfall in funds for the required amount. The interest payable on such loan shall be a rate of _____ % (insert number) above
-3the prime lending rate as determined by the _________________________________ (insert full name of lending institution). The total amount of the loan, including interest, shall be deemed to be charge over the non-paying Co-Owner's interest in the Property. 9. Sale of Property without Pre-emption Rights
9.1 A Co-Owner may, at any time, sell, transfer, or dispose of any part of or the whole of his interest in the Property (hereinafter referred to as the "Interest") to another party or parties. Prior to such sale, transfer, or disposition of the Property, the party purchasing the Interest shall execute a deed in the form as set out in Schedule 5 attached (hereinafter referred to as the "Buyer's Deed"), which is made a part of this Agreement as fully as if it were set forth herein.