Tenants in common/co-habitation agreements and Partition Buyout agreements

Co-owning property with a friend, partner, relative, or business associate can offer financial advantages—but without a clear legal agreement, it can also invite serious risk. Default laws rarely reflect the unique intentions or contributions of co-owners, making disputes over ownership, expenses, or exit terms all too common.

Without a Tenants in Common Agreement, sometimes referred to as a Co-Habitation Agreement, misunderstandings can escalate into costly legal battles, strained relationships, or forced sales. Clearly defining each party’s rights, responsibilities, and remedies is critical to protecting your investment and peace of mind.

GLO provides the legal clarity you need to navigate co-ownership with confidence—ensuring your agreement reflects your goals, minimizes risk, and protects both your assets and your relationships.

Why a tenants in common agreement Matters

A Tenants in Common Agreement is a binding contract that defines each co-owner’s percentage interest, responsibilities, financial contributions, and decision-making authority. It also outlines what happens if an owner wants to sell, transfer, or exit the arrangement. Without it, co-owners are left to navigate disputes under default legal rules that often don’t reflect their intentions—and that can result in drawn-out litigation.

Unwritten co-ownership arrangements often lead to confusion over who pays for what—and when. Without a clear agreement, co-owners may have conflicting expectations about down payments, mortgage contributions, repairs, taxes, and insurance. As financial circumstances shift, so do assumptions, creating resentment, imbalance, and disputes. One party may bear more of the financial burden, while another may be accused of not contributing enough. Disagreements can also arise over rental income, maintenance responsibilities, and the value of improvements—especially if there's no record of who paid for what.

When roles and responsibilities aren’t clearly defined, misunderstandings are inevitable. Who covers repairs? How is rental income divided? What happens if one co-owner can’t pay their share of the mortgage? A Tenants in Common Agreement answers these questions in advance—documenting contributions, assigning responsibilities, and outlining procedures for reimbursement or buyouts. It fosters fairness, reduces tension, and provides a clear path forward if disputes arise, helping co-owners avoid costly conflict and protect their financial interests.

The Risk of Partition Lawsuits

When co-owners can’t agree on major decisions—like selling the property, dividing proceeds, or buying out a co-owner—and no formal agreement exists, the most common legal remedy is a partition lawsuit. This court process forces the sale or division of the property, regardless of the owners' preferences.

In most real estate cases, partition leads to a court-ordered sale, which is often rushed and yields a below-market price. Proceeds are diminished not only by a discounted sale but also by legal fees, court costs, and the loss of control over how and when the property is sold. Worse still, the process can take months, create tension, and permanently damage relationships between co-owners.

Even when one party wants to keep the property, the absence of a written agreement makes it difficult to negotiate a fair buyout. If the parties can’t agree on terms or valuation, the court typically orders a sale, regardless of the owners’ original intentions.

A well-drafted Tenants in Common Agreement prevents this outcome by outlining how disputes should be resolved and how a buyout should work—through tools like a right of first refusal, structured buyout terms, and pre-agreed valuation methods. These provisions keep decisions in the hands of the co-owners and help ensure a fair, controlled exit if things change. Without such planning, you risk turning a shared investment into a costly and stressful legal battle.

Partition Buyout Agreements: A Practical Exit Without a Forced Sale

If you're facing co-ownership challenges without a Tenants in Common Agreement, a Partition Buyout Agreement can provide a clear, cost-effective resolution. This agreement allows one co-owner to buy out the other’s interest—avoiding a court-ordered partition lawsuit or a forced sale at below-market value.

A buyout agreement can help preserve equity, protect relationships, and provide time to secure financing and transition ownership in an orderly way. It also allows co-owners to maintain greater control over the outcome, rather than leaving critical decisions to a judge. Whether you're hoping to remain in the home or exit cleanly, GLO can help negotiate and finalize terms that reflect your goals and protect your interests.

how glo can help

Whether you're buying property together, inheriting it, or already co-owning without an agreement, it’s not too late to put the right protections in place. A TIC Agreement not only prevents disputes—it preserves your investment, protects relationships, and provides peace of mind. Even if you already co-own property without an agreement, it’s not too late to set one up.

And if you co-own a home and are facing a dispute, GLO can help you reach a fair resolution with a partition buyout agreement—without the cost and stress of court. GLO helps clients structure and negotiate Tenants in Common Agreements and Partition Buyout Agreements tailored to their your situation, ensuring smooth co-ownership and safeguarding your interests.

Contact GLO today to ensure your shared property interest is backed by a clear, enforceable agreement.

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