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Ownership Agreement
I need an ownership agreement for a property jointly purchased by two parties, outlining the percentage of ownership, responsibilities for maintenance costs, and procedures for selling or transferring ownership shares. The agreement should also include dispute resolution mechanisms and comply with Austrian property laws.
What is an Ownership Agreement?
An Ownership Agreement documents who owns what share of a business or property in Austria, setting clear terms for how ownership rights work between multiple parties. These contracts are especially common in GmbHs (limited liability companies) and real estate joint ventures, where they spell out each owner's percentage stake and voting rights.
Under Austrian civil law, these agreements protect all parties by clearly defining how profits get shared, what happens when someone wants to sell their portion, and who makes key decisions. They're particularly important for family businesses and startup ventures, where having clear ownership rules helps prevent future disputes and ensures smooth business operations.
When should you use an Ownership Agreement?
Create an Ownership Agreement when starting any business venture with multiple owners in Austria, especially for GmbHs or real estate investments. It's essential before money changes hands or operations begin, as it prevents costly disputes about control and profit sharing later on.
The agreement becomes particularly crucial during major business changes: when bringing in new investors, planning succession in family businesses, or launching joint ventures. Austrian law requires clear documentation of ownership structures, so having this agreement ready helps with everything from bank negotiations to tax compliance and eventual business transfers.
What are the different types of Ownership Agreement?
- Business Ownership Agreement: Basic template for small businesses and startups, covering essential ownership rights and responsibilities
- Company Ownership Agreement: Comprehensive version for larger GmbHs, including detailed governance and profit-sharing structures
- Operating Partnership Agreement: Focuses on day-to-day management rights and operational decision-making between partners
- Equity Ownership Agreement: Specifically designed for stock distribution and shareholder rights in corporations
- Partnership Investment Agreement: Tailored for investment partnerships, detailing capital contributions and return distributions
Who should typically use an Ownership Agreement?
- Business Partners: Primary signatories of Ownership Agreements who establish their rights, responsibilities, and ownership stakes in the venture
- Legal Counsel: Attorneys who draft and review agreements to ensure compliance with Austrian corporate law and protect clients' interests
- Company Directors: Execute and implement the agreement's terms in daily operations, especially in GmbHs
- Tax Advisors: Guide ownership structure decisions to optimize tax efficiency under Austrian regulations
- Notaries: Authenticate signatures and verify document compliance with Austrian legal requirements
- Family Members: Often involved in family business succession planning and generational transfers of ownership
How do you write an Ownership Agreement?
- Owner Details: Collect full legal names, addresses, and tax IDs of all participating owners
- Ownership Structure: Define exact ownership percentages and any special voting rights or restrictions
- Financial Terms: Document initial capital contributions, profit-sharing ratios, and distribution rules
- Management Rights: Outline decision-making processes and operational control parameters
- Exit Provisions: Specify buyout procedures, transfer restrictions, and succession planning
- Compliance Check: Our platform ensures your agreement meets all Austrian legal requirements while avoiding common drafting pitfalls
- Notarization Plan: Schedule appointment with an Austrian notary for document authentication
What should be included in an Ownership Agreement?
- Party Identification: Complete legal names and addresses of all owners, matching official registration documents
- Ownership Structure: Precise percentage holdings and types of shares or interests held by each party
- Governance Rules: Voting rights, decision thresholds, and management responsibilities under Austrian GmbH law
- Financial Provisions: Capital contributions, profit distribution formulas, and loss-sharing arrangements
- Transfer Restrictions: Rules for selling shares, right of first refusal, and succession planning
- Dispute Resolution: Clear procedures for conflict resolution under Austrian jurisdiction
- Termination Terms: Conditions and processes for dissolving the agreement or removing partners
- Compliance Statement: Reference to relevant Austrian corporate laws and regulations
What's the difference between an Ownership Agreement and a Business Acquisition Agreement?
A key distinction exists between an Ownership Agreement and a Business Acquisition Agreement in Austrian law. While both deal with business ownership, they serve different purposes and apply at different stages of business relationships.
- Timing and Duration: Ownership Agreements establish ongoing relationships between business partners, while Business Acquisition Agreements handle one-time transfers of business ownership
- Scope of Coverage: Ownership Agreements detail day-to-day operations and long-term governance, whereas Acquisition Agreements focus on purchase terms, warranties, and transfer conditions
- Party Relationships: Ownership Agreements govern relationships between continuing partners, while Acquisition Agreements regulate buyer-seller transactions
- Legal Requirements: Under Austrian law, Ownership Agreements need ongoing compliance with GmbH regulations, but Acquisition Agreements primarily focus on transfer requirements and due diligence
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