Chapter 8: Co-Proprietorship
Co-Proprietorship = 2 or more owners owning a piece of land together under a single title.
Co-Proprietorship allows 2 or more owners who has interest in the land to have their name endorse in the land title and to protect each owner interest.
A) 10acres with 2 owners.
If owner A wants to charge his portion which is 5 acres to the bank for a sum of money, he cannot do so without the consent of owner B. Once the land is charge, both owner A and B has to serve interest. To have co-proprietorship is to somehow prevent the other owner(s) from selling, charging or JV without the others consent and have all the interest by himself.
B) 10acres with 10 owners,
If owner no.1-9 wants to JV with a developer to developer the land into shoplots. The terms given by the developer is very attractive. But owner no.10 does not seems to be interested with the JV proposal and rejects the whole idea, therefore the whole JV proposal would be scrap off due to owner no.10. There is no such thing as majority vote in co-proprietorship. In order to prevent such issue from happening, all the 10 owners have to sign a Power of Attorney letter to give the Power to someone they trust (it can be one of the owners or someone else) to execute the best option on behalf of them. So if all the owners sign a PA to owner no.1, if owners no.1 thinks that the JV proposal is the best option for all the owners, the proposal would still go on even if some owner disagree on the proposal.
Owning the land using co-proprietorship is good in general. But a PA (semi or full power PA) must be sign to prevent any dispute arise in the future.
Disclaimer: The article above is solely for reference purpose and any legal issue please consult a lawyer for proper legal advices.