October 24, 2023
Co-ownership of property in Malaysia can be a great investment opportunity, but it also comes with its own set of challenges. Disputes can arise between co-owners, leading to frustration, and even legal action in extreme cases. To avoid such situations, here are some tips on how to maintain a healthy and conflict-free co-ownership:
1. Put everything in writing
It is important to have a written agreement between co-owners highlighting all the details, such as the division of responsibilities, costs of repairs, and any other important matter. This agreement must be reviewed and signed by all co-owners before purchasing the property, and legal advice should be sought to ensure its validity.
2. Clarify ownership shares
Co-owners should determine their ownership shares in the property to avoid confusion or disagreements over the division of profits or expenses. This information should be clearly documented in the written agreement.
3. Create a system for decision-making
Co-owners should have a decision-making system in place that works for everyone. This should include how decisions are made, how to resolve disputes, and how to handle situations when one co-owner wants to sell their share of the property.
4. Set ground rules
Establish rules for living together in the property. These rules should include how to split expenses, rental income distribution, and rules of conduct, among others. Each co-owner should be responsible for taking care of their share of the expenses and obeying the agreed-upon rules.
5. Be respectful
There are times when co-owners may have disagreements or different opinions, but it is important to resolve any issues with respect and understanding. All parties should be open to communication and have a willingness to compromise.
With these tips, you can have a successful and harmonious co-ownership experience in Malaysia.