Sharing A Cottage Agreement

For parents, it is often important to start the cottage agreement process, but counseling and involving children is an essential component. The well-intentioned vision of parents on how the cottage should work when they are no longer involved rarely leads to a true “buy-in” of the children, necessary to achieve lasting success of the cabin estate. No one wants a disgruntled or financially pressured homeowner to be able to sell his or her stake outside the group without including the others. However, without an agreement, any owner can ask the court for the property to be sold and for its share to be paid. It is much better for all owners – for their mutual protection and utility – to agree to waive this right to force the sale and put in place a sales mechanism instead. An agreement may completely prohibit the sale of a share, but it ignores a legitimate need to sell, such as a long-distance train. B, serious health problems or divorce. Instead, you should develop a responsible exit strategy. One possibility is a right in advance from other owners and an appropriate payment formula for the retiring owner. If the remaining partners cannot afford the outgoing owner`s share, they could have a veto over potential new co-owners. If they persist in rejecting all proposed replacements, then as a last resort, the cottage goes for sale. This option usually encourages the remaining owners to buy the stock, find a co-owner themselves or take a fresh face proposed by the outgoing owner.

First, the co-owners have to ask some important questions. For example, can all homeowners use the holiday home all the time? If there are periods of exclusive use, how are they allocated? Can homeowners bring guests on their train, or even rent or rent the holiday home? Who opens and closes the hut every year? Who ensures that electricity bills, municipal taxes and insurance premiums are paid on time? And how are collective decisions made for changes, improvements or additions? Decisions about the cabin: how will you make decisions about the cottage? A “majority rule” approach may work well on most issues, but important decisions (for example. B sale or substantial improvements) may require unanimity. Mediation may be necessary if people simply cannot accept. A cottage agreement negotiated and implemented while the parents are active can make the difference between a short and unfortunate period of fraternal possession and a stable and sustainable structure for future generations to enjoy the cabin. With the holiday home: Ask if everyone can use the holiday home at the same time, or if each person is used exclusively at certain times. A family I know divides summer into weeks and gives each of the three siblings the same number of weeks, with two weeks for everyone to be together if they wish. In any case, it is a good idea to meet once a year to talk about the cottage and review the cottage agreement. The transmission of legal property is not the meaning of the succession process of the cabin, but only an important step on the way.

It is equally important to make sure that he stays in the family afterwards.