Co-Ownership Agreement: Do I Need One?

Have you or are you intending to purchase a property with another person such as a friend, family member, or investor?

Have you considered who will be responsible for certain aspects of maintaining the property?

When you are considering purchasing property with another person or persons, it is critically important that each party has a complete understanding of their respective rights and obligations in relation to that property.

More often than not, parties do not discuss such things and enter into the transaction under the belief that each party is on the same page as to how the property will be maintained.

When there are inconsistencies with this belief, conflict may arise.

Co-Ownership Agreements

Too prevent such conflict, a co-ownership agreement may be prepared.

The agreement may set out and formalise issues that may arise with the property.

What is included in a Co-Ownership Agreement?

The following aspects may be included in a Co-Ownership Agreement:

the financial contribution of each of the parties;
payment of outgoings and loan repayments;
responsibility for maintenance of the property;
consequences of defaulting on payments;
who can live in the property;
notice of intention to sell their share in the property;
the potential passing of a co-owner; and
how the property will be held (ie, joint tenants or tenants in common).

These matters are often not properly considered when purchasing a property, however, it is important to plan for any future conflict that may occur between prospective co-owners.

A co-ownership agreement may (likely) reduce the risk of litigation between the parties and/or assist with resolving litigation in a timely manner, thus saving in legal costs.

Contact Us

For more information about co-ownership agreements, contact us at Bambrick Legal today. We offer a free, no-obligation 15-min consultation for all enquiries.