A property-sharing agreement (PSA) is a contract between two or more owners of a property. It is a document intended to cover the parties` existing agreements on real estate and to ensure that real estate will happen in the future. One of the most important changes in the distribution of shares is whether the parties intend to create tax benefits for the investor. If investors want tax benefits, it is necessary for the occupier to pay the monthly rent to the investor for the use of the percentage of the property that the investor owns. When this approach is adopted, the investor usually uses the total amount of rent to pay for property-related expenses. The result is: (i) the total monthly expenses of the occupier are the same, as if no rent had been paid (since the amount the occupant pays in rent is offset by the amount that the investor contributes to the operating costs); and (ii) the investor has no taxable income (since the amount the investor receives as rent is offset in dollars per dollar by the amount he/she contributes to property expenses). The only point of the lease transaction is to allow the investor to obtain a deduction from depreciation tax. Owning a holiday home with friends or family members can be an inexpensive way to have a second home. If the property is used only by the owners and not by the paying customers, the property should be easier to manage. Owner`s Contributions to Down payment rights Occupancy rights and restrictions for occupants Periodic inspections by the investor`s owner Mortgage bonds and shared payment System Investor payment system Checking invoices that invoices are paid Consequences for late payment and non-payment Responsibility and procedures for repairs Assignment for repairs procedure, if the employee wishes to improve the sale and buyback timing and the procedures for sharing the valuation and sales revenue Effects of repair and improvement expenses prior to the sale/buyback benefits of the reduction of the mortgage principle on the Sale/buyout Early capital allocations by occupiers or investors Consequences and procedures for breaching dispute resolution procedures in the event of a breach of the capital-sharing agreement, net profits of the property are distributed to the pro-rata and according to their respective interests and distributed to the parties. All losses and liabilities generated in connection with the activity are borne and paid by the parties in the same proportion. This document can be used to create a condominium for a property.
It can be used and modified for up to four co-owners to reflect ownership of equal shares, fixed shares and variable shares, to reflect the financial contribution of each co-owner to the property. The document also provides for a pre-emption right in favour of other co-owners when a co-owner wishes to sell his share. The parties are currently parties to the property management contract with (the « management contract »). or simultaneously become parties to the property management contract. (the « manager ») is the only property manager acting on behalf of the parties for the management, operation, maintenance and leasing of the property for the duration of the administrative agreement.