"Tenants in Common Agreement Template"

What Is a Tenants in Common Agreement?

A Tenants in Common Agreement is a contract that can be used when two or more individuals own property together and want to legally define their rights and obligations in this ownership. The purpose of the document is to regulate the joint ownership of the property where each of the involved parties owns a set share of the home.

A printable Tenants in Common Agreement template can be downloaded through the link below.

This agreement mostly focuses on the protection of each owner's interests, rather than on property management. It can be signed between spouses, different family members, or friends when they buy property together. Signing a Tenants In Common Agreement can be beneficial for those individuals who want to define their share of the property and want to pass it on, in the event of their death, to their heirs.

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How to Write a Tenants in Common Agreement?

Make sure that your Tenants in Common Agreement Form includes the following parts:

  1. Introduction. The document can start with a part where the parties state the place and date that they signed the agreement. This part of the document can also designate the parties' names, positions in the agreement, and the nature of the agreement they are entering. It should clearly state that they are collectively referred to as "tenants in common."
  2. Recitals. In this part of the agreement, the tenants in common can declare that they own a certain type of property as tenants in common. Here, they can also provide information about the property, such as the address, description, and purpose.
  3. Term. Parties can use this part of the Tenants in Common Agreement to designate when their tenancy begins and when it ends. Generally, it begins when the agreement is signed by all of the involved parties and ends when the property is sold or exchanged, or when the agreement is terminated unless stated otherwise.
  4. Payment. Here the parties can state how the initial payment is supposed to be paid, and how the property shares are divided between them.
  5. Further Contributions. In the case that the property will require any further investment, the parties can include information about how those contributions are supposed to be made and how much each party is supposed to invest. Usually, each party's contribution amount is defined according to the initial payment they made.
  6. Other Provisions. In addition to everything mentioned above, the tenants in common can indicate other clauses in the agreement such as the governing law, representatives, indemnification clause, etc.
  7. Signatures. At the end of the document, the parties are supposed to put their names and signatures.

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Tenants in Common Agreement
This Tenants in Common Agreement (hereinafter referred to as the “Agreement”) is
entered into as of ________________, by and between ________________ (hereinafter
referred to as the “________________”) with a mailing address of __________________
___________________________________________________, and ________________
(hereinafter referred to as the “________________”) with a mailing address of ________
__________________________________________________, collectively referred to as
“Owners” and individually as “Owner” and ________________, (hereinafter referred to
as the “Corporation.”)
WITNESSETH:
WHEREAS, the Owners have, simultaneous with the execution hereof, each
acquired a _______% undivided interest as tenants-in-common in and to that
certain real property described generally as ________________ (hereinafter
referred to as the “Property”) as described on Exhibit A; and
WHEREAS, the Owners own their interests in the Property as tenants in common,
subject to the terms, covenants and conditions set forth below, which terms are
necessary to ensure the proper and orderly management and operation of the
Property during the period of the Owners’ co-ownership;
WHEREAS, the Owners own and control the Corporation which will receive rents
and pay capital for the maintenance and improvements of the Property and act as
the manager of the Property.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Term and Automatic Renewal. This Agreement shall be for a term of successive
________________ periods, commencing on the date of execution hereof, and
terminating on ________________, unless (i) either party terminates this Agreement by
delivering written notice to the other on or before ________________ of any year during
the pendency of this Agreement; or (ii) termination of this Agreement by both parties, in
writing.
2. Management. The Owners shall execute a Management Agreement naming
Corporation as manager of the Property, on a renewable annual basis, to handle such
matters as the lease, operation and maintenance of the Property as more fully set forth in
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Tenants in Common Agreement
This Tenants in Common Agreement (hereinafter referred to as the “Agreement”) is
entered into as of ________________, by and between ________________ (hereinafter
referred to as the “________________”) with a mailing address of __________________
___________________________________________________, and ________________
(hereinafter referred to as the “________________”) with a mailing address of ________
__________________________________________________, collectively referred to as
“Owners” and individually as “Owner” and ________________, (hereinafter referred to
as the “Corporation.”)
WITNESSETH:
WHEREAS, the Owners have, simultaneous with the execution hereof, each
acquired a _______% undivided interest as tenants-in-common in and to that
certain real property described generally as ________________ (hereinafter
referred to as the “Property”) as described on Exhibit A; and
WHEREAS, the Owners own their interests in the Property as tenants in common,
subject to the terms, covenants and conditions set forth below, which terms are
necessary to ensure the proper and orderly management and operation of the
Property during the period of the Owners’ co-ownership;
WHEREAS, the Owners own and control the Corporation which will receive rents
and pay capital for the maintenance and improvements of the Property and act as
the manager of the Property.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Term and Automatic Renewal. This Agreement shall be for a term of successive
________________ periods, commencing on the date of execution hereof, and
terminating on ________________, unless (i) either party terminates this Agreement by
delivering written notice to the other on or before ________________ of any year during
the pendency of this Agreement; or (ii) termination of this Agreement by both parties, in
writing.
2. Management. The Owners shall execute a Management Agreement naming
Corporation as manager of the Property, on a renewable annual basis, to handle such
matters as the lease, operation and maintenance of the Property as more fully set forth in
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said agreement, a copy of which is attached hereto as Exhibit B.
Said Management Agreement shall provide a _______ month termination provision.
Instructions to Corporation may be issued by either of the Owners, except that, in the
event of the sale or refinancing of the Property, the consent of both Owners shall be
required.
3. Operating Capital and Expenses. In the event Corporation determines, from time to
time, that additional capital from the Owners is required (whether for capital
improvements or ordinary and routine operating expenses, including insurance, taxes,
snow removal, utilities, and furniture for the Property) to operate, improve, or otherwise
manage the Property, Corporation shall so notify the Owners, in writing, of the total
additional sum required, and request that each Owners submit _______% (or the amount
of each Owners proportionate share of said total, if different), within _______ days after
receipt of said written notice.
Operating Capital and Expenses; Emergency Advances. Regardless of the determination
by the Corporation regarding additional capital needs and requirements from the owners,
should either owner determine that an “emergency condition” exists, that owner shall be
entitled to make advances to protect and preserve the value of the real estate. An
“emergency condition” shall include any necessary expense or capital improvement to
protect and preserve the value of the real estate from immediate threat of significant
harm. Should either owner make such advances, he should give the other owner written
notice thereof within _______ days after making the advance.
The failure of any Owner to make such additional contribution within _______ days after
receipt of notice requesting the same shall constitute a material breach of this Agreement
and the non-contributing Owner shall be considered in default hereunder. The amount of
any delinquent additional contribution plus interest at the prime rate as published from
time to time in the Wall Street Journal plus _______ percent, shall be offset against any
further distributions due the defaulting Owner.
The non-defaulting Owner shall have the right, but not the obligation, to pay the
defaulting Owner’s pro rata share of such additional contribution. The non-defaulting
Owner so electing to pay the defaulting Owner’s share shall be entitled to a percentage of
the defaulting Owner’s interest. A portion of the defaulting Owner’s interest shall be
transferred to the non-defaulting Owner who has made said payment under the following
formula: the percentage of the defaulting Owner’s interest that will be transferred to the
non-defaulting Owner shall be the quotient wherein the dividend is the amount paid by
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the non-defaulting Owner and the divisor is the current amount of all sums paid, to date,
by the defaulting Owner for the purchase or operation of the Property. For example, if the
amount paid by the non defaulting Owner is $________________ and the current total
sums paid by the defaulting Owner for the purchase and operation of the Property is
$________________, then _______% percent of the defaulting Owner’s interest will be
transferred to the non-defaulting Owner. The defaulting Owner shall have a period of
_______ days from the date of said payment to redeem its interest from the
non-defaulting Owner by paying to said non-defaulting Owner the amount of the funds
advanced by the non-defaulting Owner together with interest thereon at the Wall Street
Journal prime rate plus _______% percent.
4. Right of First Refusal as Condition Precedent to Sale to Third Party or Partition
of the Property.
A. Sale of the Property. Either Owner shall have the right to sell, exchange or
otherwise transfer its interest in the Property, or any part thereof, after having first
offered to sell said interest to the other Owner in accordance with the following
procedure:
a. The interest in the Property which the transferring Owner intends to sell,
exchange or otherwise transfer (whether such interest includes all or a
portion of the Owner’s interest) shall first be offered in writing to the other
Owner at the stated price at which the interest is proposed to be sold to a
third party. The other Owner shall have a period of _______ days after
receipt of such notice in which to accept or reject said offer, in writing.
b. In the event the non-transferring Owner rejects the offer, then the
transferring Owner shall be free to sell its interest in the Property on the
terms set forth in the notice and on no other terms. In the event the
non-transferring Owner accepts the offer, then the non-transferring Owner
shall purchase the interest of the transferring Owner on the terms set forth
in said notice within _______ days after the acceptance of said offer. The
selling Owner shall pay any and all title insurance premiums and
reasonable closing costs associated with said transfer.
B. Partition of the Property. Either Owner shall have the right to partition the
Property, after having first offered to sell his interest therein to the other Owner in
accordance with the following procedure:
a. The Owner desiring to partition the Property shall notify the other Owner,
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in writing, of such desire. In such notice, the Owner seeking partition shall
name an appraiser active in the appraisal of recreational property in
________________, ________________. The non-partitioning Owner shall
have _______ days to consent to such appraiser, or identify another
appraiser active in ________________, ________________. Failure to
submit an alternative appraiser’s name within the _______ day period
constitutes consent to the initial named appraiser. If the non-partitioning
Owner identifies a second appraiser, then the two identified appraisers shall
promptly designate a third appraiser to appraise the Property. The
partitioning Owner shall pay the cost of an appraisal of the Property
conducted by the designated or agreed appraiser.
b. In the event the non-partitioning Owner rejects the offer, then the
partitioning Owner shall be free to initiate a partition action in the
appropriate court. In the event the non-partitioning Owner accepts the offer,
then the non-partitioning Owner shall purchase the interest of the other
Owner at the price set forth in said notice within _______ days after the
acceptance of said offer. The selling Owner shall pay any and all title
insurance premiums and reasonable closing costs associated with said
transfer. The parties acknowledge and agree that, in the event of default
under the terms of this Agreement by either Owner, the non-defaulting
Owner shall have the right to seek specific performance of the terms of the
Agreement by the defaulting Owner and money damages.
5. Status of Relationship. The parties acknowledge that it is their intention to hold the
Property as tenants in common and that they have expressly elected not to become
partners and that neither this Agreement nor any provision of this Agreement shall be
interpreted to impose a partnership relationship at either law or equity on the parties.
Accordingly, no Owner shall have any liability for the debt or obligation of any other
Owner.
6. Notice. Any notice required or desired to be given under this Agreement shall be
deemed given, if in writing and hand delivered or sent by United States certified mail, to
the other party at the mailing address shown for said party above.
7. Counterparts. This Agreement may be executed in counterparts, each of which will
be deemed to be an original and all of which together will constitute one and the same
instrument.
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8. Governing Law. The Parties agree that this Agreement shall be governed by the laws
of _____________________.
State
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
_________________________________
_________________________________
________________ Printed Name
________________ Printed Name
_________________________________
_________________________________
________________ Signature
________________ Signature
_________________________________
_________________________________
Date
Date
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