Here you find the answers to all the questions you might have.

How much money do I need to invest?

The amount you choose to invest depends on your financial situation and personal preferences. However, we recommend a minimum investment of EUR 10,000 per investor / co-owner

How can I get the money I invested back?

The co-ownership agreement, which you and your co-owners will sign, will outline the minimum investment periods based on mutual preferences. We recommend including a minimum period of 5 years to benefit from longer-term property price increases.

What happens if I sell my co-ownership shares after the minimum holding period?

If a co-owner decides to sell their shares after the minimum holding period, the remaining co-owners will have the first right to purchase the shares. If they choose not to, the shares can be sold to an external investor.

What are my rights as a property co-owner?

As a property co-owner, you have several important rights, typically outlined in the co-ownership agreement. Here are some common rights we will help you stipulate with your co-owners:

Right to Use and Enjoy the Property: You are entitled to use and enjoy the property in accordance with the terms agreed upon with your co-owners, such as designated time slots or usage schedules.

Right to Sell or Transfer Ownership: You have the right to sell or transfer your shares of the property, typically after the minimum holding period, as stipulated in the co-ownership agreement. In most cases, the other co-owners will have the first option to buy your shares before they can be sold to external parties.

Right to Receive Income: If the property generates rental income, you are entitled to your share of the income, proportionate to your ownership percentage.

Right to Participate in Decision-Making: You have the right to participate in key decisions regarding the property, such as maintenance, renovations, or selling the property. These decisions are often made by vote, with each co-owner's voting power usually based on their ownership percentage.

Right to Access Financial Information: You have the right to access financial information related to the property, including income, expenses, taxes, and any relevant legal matters.

Right to Fair Treatment: As a co-owner, you have the right to be treated fairly and in accordance with the terms of the co-ownership agreement, without undue discrimination by other co-owners.

These rights can vary depending on the specifics of the co-ownership agreement, so it’s essential for us to draft the terms carefully with you and all other co-founders before entering into an agreement.

What are my obligations as a property co-owner?

As a property co-owner, you have certain obligations that are essential to ensuring smooth co-ownership and maintaining the property. These obligations are typically outlined in the co-ownership agreement and are aligned with Portuguese legal requirements. Common obligations include:

Financial Contributions: You are responsible for contributing your share of property-related expenses, such as maintenance, repairs, property taxes, insurance, and utilities. This is usually proportional to your ownership percentage.

Maintenance and Upkeep: You have an obligation to maintain the property in good condition, both during your usage period and in general. This can include routine cleaning and minor repairs, and you may need to agree on larger maintenance projects with the other co-owners.

Compliance with the Co-Ownership Agreement: You must adhere to the terms of the co-ownership agreement, including the rules governing the use of the property, such as scheduling, periods of use, and any restrictions on modifications or alterations to the property.

Respecting Other Co-Owners’ Rights: You are obligated to respect the rights of your co-owners or tenants, including their rights to use and enjoy the property. This includes not obstructing or infringing on their designated usage times or making unilateral decisions about the property.

Participating in Decision-Making: You may be required to actively participate in key decisions regarding the property, such as voting on significant repairs, selling the property, or other management issues. It is important to engage in these decisions as they impact all co-owners.

Payment of Debts and Liabilities: If the property incurs debts or liabilities, you may be responsible for contributing your share toward these costs, again proportionate to your ownership percentage.

Following Legal Requirements: You are obliged to comply with any legal and regulatory obligations related to property ownership, including the payment of taxes, adhering to local property laws, and ensuring the property is used in accordance with zoning regulations.

Offering Shares for Sale to Co-Owners First: If you wish to sell your shares, you may be obligated to offer them first to the other co-owners before selling to an external buyer, depending on the terms of your agreement.

By fulfilling these obligations, you help maintain a positive relationship with your co-owners and ensure the property is managed responsibly.

Can I occupy the property?

This will depend on the terms of your co-ownership agreement. Here are key points to consider:

Shared vs. Exclusive Occupancy: Some co-ownership agreements allow for shared occupancy, where co-owners can use the property simultaneously, while others establish exclusive periods for each co-owner to ensure privacy.

Usage Rights: Co-ownership agreements often outline specific rules for occupying the property, such as designating time slots for each co-owner's exclusive use. This helps ensure all co-owners can enjoy the property fairly.

Proportional to Ownership: Your right to occupy the property may be proportional to your ownership share. For instance, if you own 20% of the property, you may have access for a corresponding percentage of the year.

Usage Limitations: There may be restrictions on how the property can be used, such as whether it can be rented out, how many people can stay at once, or whether major modifications are allowed during your occupancy.

Maintenance During Occupancy: When you occupy the property, you will likely be responsible for basic upkeep and maintaining the property’s condition during your stay.

Can we get a mortgage to purchase the property?

Yes, it is possible to obtain a mortgage to purchase a property through co-ownership. Our specialized team will be happy to help you with this! There are specific factors to consider:

Joint Mortgage: In a co-ownership arrangement, you and your co-owners can apply for a joint mortgage. This means all co-owners are collectively responsible for repaying the loan, and each co-owner’s creditworthiness will be assessed. Lenders will consider the financial stability of each co-owner when deciding whether to approve the mortgage.

Co-Ownership Agreement and Mortgage Terms: The mortgage lender will likely want to see the co-ownership agreement to understand how the property will be managed and ensure that it aligns with their lending requirements. The agreement should clearly outline each co-owner's financial obligations toward the mortgage.

Proportional Responsibility: Each co-owner’s responsibility for the mortgage payments can be divided based on their ownership share. For example, if you own 40% of the property, you might be responsible for 40% of the mortgage payments, though the lender will hold all co-owners equally liable for the full repayment.

Liability: If one co-owner defaults on their share of the mortgage payments, the other co-owners may be held responsible for covering the shortfall. Processes under these scenarios will be clearly specified in the contract.

Individual Mortgages: In some cases, co-owners might prefer to take out separate mortgages for their portion of the property. This option depends on the lender and how the property ownership is structured. Each co-owner would only be responsible for their own mortgage, but this arrangement can be more complex to manage.

Lender Policies: Not all lenders offer mortgages for co-owned properties, so it may be necessary to find a lender who is familiar with this type of arrangement. Specialized mortgage products for fractional ownership or co-ownership may be available. We will be by your side and help you find the best solution for your needs.

Before proceeding, we will have several discussions with all parties involved so that all co-owners fully understand their responsibilities and the terms of the mortgage.

What happens if one co-owner defaults?

In the case of a default by one or multiple co-owners in a co-ownership arrangement, several potential consequences and steps can occur. These depend on the terms outlined in the co-ownership agreement and the mortgage contract (if a mortgage is involved). Here’s what typically happens:

Joint Liability for Mortgage Payments

- Joint Mortgage: If the property is financed with a joint mortgage, all co-owners are collectively responsible for ensuring the full mortgage payment is made. If one co-owner defaults, the remaining co-owners may be required to cover the defaulting party’s share of the payment to avoid defaulting on the mortgage as a whole.

- Impact on Credit: A default by one co-owner can negatively affect the credit scores of all co-owners if the mortgage payment isn’t covered. Lenders may report missed payments for the entire loan, impacting everyone involved.

Internal Co-Ownership Agreement Enforcement

- Payment Responsibilities: The co-ownership agreement should outline what happens in case of default, including any penalties or procedures for handling missed payments. It may include clauses about how co-owners can take legal action against the defaulting party or enforce payment obligations.

- Use of Reserve Funds: Some co-ownership agreements establish a reserve fund or savings pool specifically for emergencies or default situations. If one co-owner defaults, the reserve funds may be used to cover their share temporarily.

Forced Sale of Shares

- Selling Defaulting Co-Owner’s Share: In some cases, the co-ownership agreement may include a clause allowing for the sale of a defaulting co-owner’s shares. The remaining co-owners usually have the first right to purchase the shares. If they don’t want to buy, the shares may be sold to an external party to cover the defaulting co-owner’s financial obligations.

- Forced Sale of Entire Property: If the default leads to a significant financial issue (such as an inability to cover mortgage payments), the entire property may need to be sold to repay the loan. The proceeds would be distributed among the co-owners based on their ownership shares, after settling any outstanding debts.

Mitigation Strategies

- Insurance or Protections: Some co-ownership agreements may recommend or require insurance policies, such as mortgage payment protection or life insurance, to help cover payments in case of unforeseen circumstances that lead to default.

- Proactive Communication: Co-owners should maintain open communication and act promptly if a financial issue arises. In some cases, co-owners may be able to renegotiate terms or find a solution before default occurs.

In summary, default by one or more co-owners can have serious financial and legal consequences for all parties involved. It’s therefore crucial to have a detailed co-ownership agreement in place that clearly outlines procedures for handling defaults and protects all co-owners.