Co-ownership agreement – rules for real estate, boats, and other joint property

Short answer: When two or more people own property together, the Joint Ownership Act applies in many situations unless they have agreed otherwise. A joint ownership agreement can regulate usage, costs, decisions, and exit, thereby reducing the risk of conflict.

Why is a joint ownership agreement needed?

Joint ownership can apply to, for example, a vacation home, real estate, a boat, or other property. The law is relatively brief and leaves significant practical importance to what the co-owners agree upon themselves. Without an agreement, everyday issues regarding renovation, renting, and selling can become difficult.

Public auction under the Joint Ownership Act

A central rule is that, as a main rule, a co-owner can apply to a court to have the jointly owned property sold at a public auction, unless the co-owners have agreed otherwise and there are no exceptional reasons for a postponement. This is an important reason to regulate in advance how exit and sale should be handled.

What should the agreement regulate?

• ownership shares
• how the property may be used
• distribution of costs and investments
• maintenance and insurance
• decision-making rules
• renting to third parties
• what happens if a co-owner does not pay
• right of first refusal in the event of a sale
• valuation and buyouts
• whether the right to request a public auction should be restricted by agreement

Real estate and housing require extra clarity

In the case of jointly owned real estate, the agreement should also be coordinated with title deeds, financing, mortgage deeds, and any cohabitation or marital property issues. A joint ownership agreement does not in itself change who is the registered owner.

Common conflicts

• one co-owner uses the property more than the other
• different views on renovation and costs
• one co-owner wants to sell while the other wants to keep it
• renting occurs without a joint decision
• no valuation model exists for buyouts

See the Mallbutiken template for a joint ownership agreement.

FAQ

Can you agree to opt out of a public auction?

The rules of the Joint Ownership Act can be influenced in several parts through agreements. Clauses regarding sale and exit should be clearly formulated.

Is joint ownership the same thing as cohabitation property?

No. Joint ownership concerns the ownership of the property, whereas the Cohabitation Act regulates what can be included in a division of property.

Do all co-owners need to sign?

For the agreement to regulate the relationship between all co-owners, everyone should be a party to the agreement.

The article provides general information and does not replace legal advice.