Shared property is a property jointly owned by two or more people. The partners can be equal shareholders or have different percentages. Since there are several partners involved, dealing with matters of shared property can turn out to be very complicated. The following are some factors you should know about purchasing a shared home before making a decision.
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Harder to carry out negotiations
In a normal situation, as a buyer, you have to deal with a single seller who is the sole owner of the property. However, in the case of a shared property, there are several sellers involved, and all have a say. This makes negotiations both lengthier and more complicated. Instead of one seller, you will have to negotiate with and satisfy all the shareholders.
A co-ownership agreement
According to the law of Pakistan, a co-ownership agreement is needed before a shared property can be sold. A co-ownership agreement has to be signed by all the shareholders and must be registered. As a buyer, you should ensure that the sellers have drafted a co-ownership contract. This contract helps solve matters of distribution, management, and ownership. While this is primarily to support the sellers, it will also be necessary for the buyer as the property cannot be sold.
Be wary of any disputes.
When multiple people are involved, there is a greater risk of disagreements becoming more significant. Buying a property under dispute can create problems for the buyer, and the chance of their property getting stuck exists. Therefore before investing in a shared property, you should make sure that all the shareholders agree and none of them will create problems in the future. It is advised that you contact all the shareholders and not just deal with one. Buy plots in Kingdom Valley Islamabad.
Buying a single owner’s share
A shareholder cannot sell the shared property unless all other shareholders agree. However, he can sell his part of the share to a buyer. If you plan on buying the percentage of a shareholder, there are a few things that you should keep in mind. You will only get the share of that particular owner and will not be able to do anything with that property without the involvement of the other owners. Furthermore, according to the law of Pakistan, for a shareholder to sell his particular share to someone else, all partners should be present and need to agree.
It is vital for you as a buyer to get the signature of all the other parties as well.
Be wary of scams
In today’s world, many frauds and scams have been taking place. Some shareholders may sell the shared property without informing the other partners. In this case, the other shareholders can file a legal complaint and stop the sale. In this case, you as a buyer can also face legal trouble and can even be fined with a penalty. Thus it would be best to verify that there is no fraud taking place and that all partners are informed.
Make sure all agreements are clear.
Buying a property involves several pieces of paperwork, and the paperwork required for the sale of shared property is even more extensive. You must make sure that all paperwork is done timely and according to the requirements of the law. All agreements and conditions should be written to make them official and ensure that no one turns back on their word. This point is critical if you want to avoid any troubles in the future. Investing in the incorrect residence might be prevented if any issues with the papers are discovered early enough. You might want to know about 1947 Housing.
Matters of shared property can be pretty confusing. Hiring a real estate agent makes this process easier and faster. These agents are experts in this field and know how to go about things. By taking up the majority of the work, they reduce a significant burden off the buyer’s shoulder.