Own property jointly to beat harsh economic times

By Fredrick OburaThe cost of living has been rising over the years against static wages.This has, in turn, pushed the employed and unemployed to restructure their personal budgets. And a huge chunk of money previously allocated to development has been slashed to meet the cost of food, education and clothing.In response to such a situation, investors would consider acquiring certain assets in a joint ownership arrangement that involves pulling resources together to meet the financial obligation. Experts say the system always, either through the tenancy in common or joint tenancy, is a strategy in the right direction and could shape one’s financial status. Co-ownership agreementJoint property ownership refers to two individuals coming together to own a property, the parties involved could be, a married couple, a parent with an adult child, or unrelated investors. Property may apply to a residence, a business, or intellectual property like patents. Law experts say the arrangement is feasible when partners are trustworthy and ready to discuss and settle any dispute in time," says Moses Osoro of Muriu Mungai Advocates."Legal documents like trust deed and co-ownership agreement should be signed by partners involved," he adds. It eliminates probate incase of a partner’s death or termination of the contract.Joint tenancy is an arrangement between two persons (usually spouses) with common interest such that when one dies, the co-owner assumes full ownership. This is different from tenancy in common where the parties involved have varied shares and interest in a property.In the case of joint tenancy, a deceased liability can sometimes remain attached to the property, especially when the deceased used the property in question as a collateral in obtaining a debt. "The creditors’ claims against the deceased owner’s estate may, under certain circumstances, be satisfied by the portion of ownership he or she previously owned," says Mr Osoro. "Joint tenancy is not limited to spouses, a parent can decide to jointly own a property with a child," notes independent financial advisor Phillip Kiarie. However, if a parent has joint ownership of say a house with one child and there are other siblings, the parent may request that the proceeds of the house be evenly divided between siblings upon his death. Parties in the two tenancy systems enjoy certain rights. For instance, each owner has an unrestricted right of access to the property, the co-owners do not have any obligation to contribute to any costs of repairing or improving the property.However, upon partition, a co-owner is entitled to recover the value added by his or her improvements to the property.

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