Split-Tenancy Agreement

Split-Tenancy Agreement

A Split-Tenancy Agreement is a legal arrangement that allows two or more parties to co-own a property while having different rights and responsibilities regarding its use and management. This type of agreement is particularly common in real estate transactions and can serve various purposes, including investment strategies, family arrangements, or business partnerships.

In a Split-Tenancy Agreement, each party typically has a defined share of the property, which may be based on financial contributions, usage, or other agreed-upon metrics. The agreement outlines each party’s rights to occupy the property, responsibilities for maintenance and repairs, and procedures for resolving disputes. Additionally, it may specify how income generated from the property, such as rent from tenants, is divided among the co-owners.

For example, if two siblings inherit a family vacation home, they might enter into a Split-Tenancy Agreement where one sibling uses the property in summer while the other uses it in winter. They agree on the expenses for upkeep and how to handle any rental income if they decide to lease it during the off-seasons. The agreement provides clarity and helps prevent conflicts over the property’s use and financial obligations.