Property Sharing or Co-Ownership Agreements

Buying real estate with friends, family (including the “bank of Mum and Dad”) or flatmates can make home ownership or investing in property more achievable given high house prices and escalating costs of living — Ensuring you are co-owning with a suitable person is critical but so is putting in place a formal and legally binding agreement between the parties due to the risks of not doing so. These documents are commonly referred to as property sharing agreements or co-ownership agreements (“co-ownership agreements”).

A well-drafted co-ownership agreement provides a clear roadmap to protect interests or resolve disputes when circumstances change or if unforeseen events occur.

Co-Ownership considerations

There are a variety of factors to be taken into account with co-ownership of property including the number of owners and their respective ownership interest and contributions. Will any of them have occupancy rights or is it purely an investment? Who pays for outgoings and maintenance? How is the purchase price being funded and how will any loans be serviced? Clear provisions are needed to cover these sorts of factors, for resolving any future disputes and providing a process for exit if one person wants to sell or there is a forced sale down the track.

Where only one co-owner is living in the property but other owners are registered on the property title (as can sometimes be the case with the “bank of Mum and Dad”) tax advice is needed to ensure no unexpected tax consequences arise.
As always personal circumstances will need to be factored in to formulate a suitable co-ownership agreement. Harris Tate can help you navigate and formulate the terms of the agreement including assisting with the legal ownership and lending structure. We also work closely with accountants and banks to ensure the best structure and agreement is put in place to future proof the co-ownership journey.

Contracting Out Agreements For Couples

For those who are married, in a civil union or in a de facto relationship, Harris Tate has specialist relationship property lawyers who can advise on property ownership and contracting out agreements. View here

Why Choose Harris Tate?

• Plain-English advice from property law experts
• Experience with all types of property co-ownership structures

Let’s Get It in Writing

If you’re buying property with someone else, don’t leave things to chance. Talk to Harris Tate about getting a legally binding agreement to protect interests and future proof the arrangement and the relationship between the parties.