Co-owner's Guide to Documentation & Record Keeping

💡Documentation is the active management of all documents, files, records, and receipts related to your co-owned property and your co-ownership arrangement.

Co-own a home? Value your time, investment, and relationship(s)?

Strong documentation is critical.

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Here’s what we’ll cover:

Co-owners want to track docs, files, records, and receipts.

In our most recent survey of 1,954 co-buyers and co-owners, 69% say they want help to manage documentation and record-keeping. But most co-owners don't cover their bases.

That's bad. Why? Homeownership is most folks' most significant investment.

A dynamic system for documentation and record-keeping is the #1 way to build and protect wealth in co-ownership. Poor or missing documentation creates unnecessary friction, costs, and risk.

A rule of thumb: if it isn't in writing, it doesn't exist.

Good news: it’s possible to get things in order. You just need a system.

Definition

Documentation for co-ownership means getting things in writing, having all co-owners confirm authenticity, and keeping up-to-date records.

The records span all aspects of co-ownership: legal, financial, social, day-to-day admin, and risk.

An effective Document Management System requires collecting artifacts:

• Documents
• Records
• Certificates
• Contracts
• Agreements
• Receipts
• Quotes
• Policies
• Meeting minutes, or other logs that reference a time, event, agreement, or intention.

But it doesn't stop there.

Some artifacts are one-off, others recur.

It's like a library. Remember those?

You have the classics, which don't change. For co-ownership, this includes thing like your Purchase and Sale Agreement, your mortgage, and your Title documents.

You also have the periodicals section, full of current newspapers and magazines. This may include the latest versions of your Co-ownership Agreement, Memorandum of Agreement, and Simple Wills

In the back, you even have a stash of periodicals going back decades. The co-ownership equivalent can include version histories of living documents that you update over time. Life changes, and so do key artifacts. It helps to maintain a version history as a reminder to all co-owners of the chain of events.

All these artifacts relate to your most important asset.

Why is documentation critical?

Have you ever had trouble organizing dinner on Friday night? Or experienced issues when it came time to split the bill?

These things should be simple. Often, they're hard.

When you own a home with someone—anyone—you can expect more of this.

Some of these situations are trickier, or more frequent, than others. Ideally, everything works out well. But with a clear and mutually-agreed source of truth, you minimize the space for disagreements.

Why hope things work out?

Take action.

What should co-owners track?

Co-owners should track all things related to the co-owned home and the co-ownership arrangement.

See a few examples below.

When it matters

A common misconception is that documentation only comes into play if there's a major disagreement between co-owners or something terrible happens. Poor record-keeping can lead to unnecessary costs and pain—even when all co-owners have good intentions.

Specifically, documentation can make or break things when co-owners…

→ Square up expenses

→ Make payments

→ Dispute charges

→ File taxes

→ Refinance

→ Apply for credit

→ Open joint financial accounts

→ Purchase co-ownership insurance

→ Make an insurance claim

→ Repair or service home systems or the property

→ Renovate or improve the property

→ Initiate or face legal action

→ Get audited by the IRS

→ Experience the death of a co-owner

→ Face identity theft, financial difficulties, or bankruptcy

→ Need to make important decisions about the property

→ Prepare for retirement

→ Tackle estate planning

→ Consider additional property purchases

→ Convert the home into a rental property

→ Transfer ownership

→ Sell the home

Common reasons why things head south

1. Inaction

In terms of organizing and managing documentation, co-owners often:

a. Do nothing, and leave things to chance
b. Do too little, like passively filing some documents in a cabinet or on Google Drive
c. Act too late, usually in reaction to a problem or crisis
d. Fail to properly document communications between co-owners

2. Arguments over money and finances

Co-owners quite rightly care about money.

When asked what motivated the decision to co-buy and co-own a home, more folks point to financial factors (69%) than social factors or even the desire to own a home.

Pile on the need to manage a range of recurring expenses, maintenance, repairs, incidentals—it's easy to understand how conflicts arise without solid documentation.

3. Conflicting expectations

Communication breakdowns often stem from a failure to align expectations and set boundaries. Common flashpoints:

Guests: A co-owner takes a relatively more lax approach to who is allowed to stay over and for how long and has their friend, family members, or lover over beyond what another co-owner feels is reasonable.

Responsibilities: Rifts develop between co-owners over real or perceived contributions to cooking, cleaning, yard work, or other routine household activities.

Plans for the property: One co-owner believes the home requires a necessary repair, while another sees the proposed work as an improvement or upgrade.

4. Missed or late payments

Multi-party finances can be a pain! Especially for co-owners.

👉 Payments needs to come from one source
👉 Coordination is required
👉 Individual contributions can vary
👉 Missed or late payments impact everyone

Take monthly mortgage payments, for example.

For a group of three co-owners who are all co-borrowers on a mortgage, each is joint and severally liable. If one co-owner fails to make payment for any reason at all, the loan servicer holds all co-borrowers accountable.

Personal credit scores, ability to borrow, and even possession of the home can be affected by a single point of failure.

5. Verbal agreements

An agreement based on a handshake and a wink doesn't pass muster.

As far as creditors, the courts, and the IRS are concerned, any decisions or determinations that aren't properly documented may simply not exist.

A pinky promise is a weak safeguard if a co-owner dies, becomes incapacitated, or is otherwise indisposed.

6. Information gaps

Gaps in information breed uncertainty.

Unsurprisingly, a recent study by a team of leading international neuroscientists links uncertainty to negative emotional states such as fear and anxiety (Morriss et al., 2022). Mountains of research support the notion that ambiguity, fear, and anxiety are counterproductive to success in any joint venture (i.e., co-ownership).

Information gaps can occur between, among, or independent of individual co-owners.

Example: three family members co-own a home

Scenario A: one co-owner fails to disclose they're facing financial criminal proceedings to other co-owners.

Scenario B: all three co-owners fail to discuss their estate planning with one another, but each has named separate parties as beneficiaries to their respective ownership interest in the property.

‍Scenario C: none of the co-owners are savvy to mortgage interest tax deductions, so no one claims the benefit.

7. Lack of controls & safeguards

Most co-owners neglect to implement adequate controls and safeguards. This is worrying in a situation that intertwines financial outcomes and property.

But that will never happen to me, right?

A recent report suggests otherwise: over half of U.S. adults surveyed have committed 'financial infidelity'.

Problems arise even when there's no ill will or harmful intent between co-owners.

Example 1: maintenance

The Co-owners neglect to define and assign responsibilities for maintenance.

Co-owners see each other daily, but no checklist or schedule is agreed upon to review basic household systems, appliances, and fixtures.

Clogged rain gutters and downspouts fill with leaves. Come Fall, rainwater overflows causing $8,000 in damage and repairs.

Example 2: personal property

After five years of owning a home, co-owners decide to sell on amicable terms.

Together, they've purchased and own $15,000 worth of furniture, kitchenware, and electronics. Individually, they've also contributed previously-owned items to the household.

When it comes time to divvy things up, they disagree on who contributed what and how to split things up. They don't have a log of previously-owned personal items, they didn't document receipts, and there's no plan for splitting shared effects.

How to beat a broken system

Homeownership is tough.

The systems that enable and support homeowners certainly weren't built with co-owners in mind.

Legal, financial, tax, and accounting frameworks assume a default—that every household contains a married couple.

Co-ownership involves multiple parties, which adds layers of complexity and demands coordination, communication, and consensus.

So what's the solution?

‍Co-owners need a system for documentation.

Benefits of a Document Management System

A document management system is the cornerstone of successful co-ownership. It creates a single source of truth that minimizes conflict, protects your investment, and facilitates smooth transitions.

Ultimately, this...

✅ Streamlines admin
✅ Improves transparency
✅ Reduces manual labor
✅ Minimizes costs
✅ Mitigates risks
✅ Provides peace of mind
✅ Increases Return on Investment

Implementing a document management system is probably the highest ROI activity co-owners can take.

With the right system, you'll save and make money.

There is a catch. You need a plan, and you need to follow through to see results.
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📱 With Co-ownerOS™, it's easy to stay on top of documentation.

Join Co-ownerOS™ Beta now to get early access, secure a lifetime discount, and trial new features before anyone else.

Document Management System essentials

Just like you can technically build a house with only a hammer and a saw, it's possible to nail documentation with existing tools. But…why? Here's a checklist of considerations your document management system should address:

🤝 Consensus

Getting on the same page about important issues can be a major hurdle. But it doesn't have to be. With a tool like Co-ownerOS™, you can swiftly draft a co-ownership agreement that forms the backbone of your co-ownership. Editable anytime, anywhere, this digital document streamlines your decisions and ensures a smooth shared homeownership journey.

🔐 Security

The last thing you need in a co-ownership situation is sensitive information falling into the wrong hands.

Your document management system should offer top-notch security features that protect your shared files from cyber threats and unauthorized access. This ensures your investment stays your business, and no one else's.

🔑 Accessibility

Co-ownership means multiple people need access to documents, often at the same time.

You need a document management system that provides instant, on-demand access to important records from anywhere, anytime. This keeps everyone on the same page, enhancing transparency and fostering trust among co-owners.

🪪 Authenticity

In disputes or legal scenarios, you need to prove that your documents are original and authentic.

A reliable document management system will validate and certify your documents with digital signatures from all co-owners, adding a layer of trust and reliability to your co-ownership.

⛓️ Immutability

Once a document is in the system, it should not be subject to unauthorized alterations or easily lost.

An ideal document management system ensures the immutability of records, preserving their original state and maintaining a credible history of your shared homeownership.

🔢 Versioning

Ever tried to figure out which of the ten "final" versions of a document is actually the final one?

A solid document management system will track all changes and updates, maintaining document versions to avoid confusion and ensuring you always have the latest and most accurate information.

🪄 Usability

A good system should not require a tech guru to operate.

Look for a user-friendly document management system that simplifies the process of uploading, sharing, and tracking documents. This will save you time, reduce frustration, and let you focus on the joys of co-ownership rather than the headaches of paperwork.

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💡See how Co-ownerOS™ uses blockchain tech to make home co-ownership simple, safe, and a smart investment.

Little something before you go...

As co-owners, your home is more than just a property—it's a shared investment, a common dream, a combined responsibility.

Each document you sign, each agreement you make, every expense you split is a thread in the fabric of your co-ownership experience.

But without a diligent system for tracking, organizing, and managing all these threads, the fabric can unravel. The resulting tangles of miscommunication, misunderstanding, and missed opportunities are not just inconvenient—they can be costly, risky, and even relationship-damaging.

That's why proper documentation is your ally.

It's the key to maintaining a smooth, efficient, and transparent co-ownership experience.

It helps you keep track of the important stuff, ensures nothing falls through the cracks, and gives you peace of mind knowing that all your co-ownership essentials are safely, securely, and efficiently managed.

Don't leave things to chance.

Take control.

Implement a robust document management system that respects the unique demands of co-ownership.

Start building the framework to uphold your co-ownership and transform it from an overwhelming challenge into a rewarding journey.

After all, as co-owners, you're on this journey together. As the saying goes, if it's worth doing, it's worth doing right.

Co-ownership, with all its moving parts, is no exception. Embrace the power of proper documentation. You won't just survive co-ownership; you'll ace it.

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Meet Co-ownerOS™

We've spent 41,500+ hours cracking co-ownership–so you don't have to.

With Co-ownerOS™, it’s easy to plan, structure, and manage co-ownership.

🤝 Streamline decisions
📝 Co-create agreements
✍️ Digitally sign from anywhere
🔐 Manage documentation
🚪 Plan an exit strategy
⚡️ Update anytime

One app to put you and your co-owners in control.

Eliminate guesswork, avoid conflict, save $1,000s on legal fees, and cut 120 hours of admin a year.

Join Co-ownerOS™ Beta now to get early access. Lock in a lifetime discount and unlock other perks. Spots are limited.

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Check out our other posts:

Co-ownership Agreements

How to split ownership of a home

Exit strategies

The 3 stages of shared homeownership

Ultimate guide to shared homeownership

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