Co-Ownership Agreements for Property

A written agreement between people buying property together - friends, siblings, parents and adult children, or investors - setting out who contributed what, who pays what, and what happens when someone wants out.

  • Contributions and ownership shares recorded
  • Mortgage, costs and occupancy arrangements
  • Exit, buy-out and sale terms
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Buying Together

Why the Title Is Not Enough

The title records whether you own as joint tenants or as tenants in common, and in what shares. It says nothing about who pays the mortgage, who lives in the property, or what happens if one owner wants to sell and the others do not.

Without an agreement, a falling-out between co-owners can end with an application to court to have the property sold. A co-ownership agreement settles those questions while everyone still agrees on them.

It is best signed before contracts are exchanged, so the way the title is held can match the agreement.

What the Agreement Covers

The Questions It Answers

Each agreement is drafted around the owners' actual arrangement.

Contributions

What each owner put in towards the deposit, duty and costs, and how later contributions are treated.

Ownership Shares

Whether the owners hold as joint tenants or tenants in common, and in what shares, so the title matches the deal.

Mortgage and Running Costs

Who pays the loan repayments, rates, strata levies, insurance and repairs, and what happens if someone falls behind.

Occupancy and Rent

Who lives in the property, whether an occupying owner pays rent to the others, and how rental income is shared.

Exit and Buy-Out

How an owner leaves - notice, valuation, the others' right to buy first, and the timeframe to sell if no one buys.

Life Events

What happens on a death, loss of capacity, relationship breakdown or bankruptcy of one of the owners.

Step by Step

How We Put It in Place

Ideally started before you exchange contracts.

01

Talk Through the Arrangement

Who is contributing what, who will live there, and each owner's plans for the next few years.

02

Decide How to Hold Title

Joint tenants or tenants in common, and in what shares, confirmed before the contract is signed.

03

Draft the Agreement

We prepare the agreement and explain each clause to all owners.

04

Review and Sign

Each owner reviews the draft. Where their interests differ, separate advice for each owner may be appropriate.

05

Purchase Proceeds

The conveyancing proceeds with the title registered in the agreed way.

06

Revisit When Things Change

A new partner, a new loan or an owner leaving is a reason to update the agreement.

Our fixed fee for a co-ownership agreement is set out on our pricing page.

View Our Fixed Fees

Joint Tenants or Tenants in Common

Where owners contribute unequal amounts, owning as joint tenants often does not reflect the deal. When a joint tenant dies, the survivor takes the whole property, regardless of who paid what.

Tenants in common in shares that match the contributions, backed by a co-ownership agreement and a will for each owner, is the more common structure where contributions differ.

Explore:

Services that often go with buying property together.

Frequently Asked Questions

When should we sign a co-ownership agreement?
Ideally before contracts are exchanged, so the way the title is held matches the agreement. It can also be put in place after purchase.
Does the agreement bind the bank?
No. If you borrow together, each borrower is usually liable to the lender for the whole loan, whatever the agreement says between the owners. The agreement governs how the owners deal with each other.
Can you act for all of us?
We can prepare the agreement for owners whose interests are aligned. Where the owners' interests differ, for example very different contributions, separate advice for each owner may be appropriate.
What if one owner wants to sell and the others do not?
That is what the exit clause is for. It usually gives the others the first right to buy at a valued price, and sets a timeframe for sale on the market if they do not.
Can we change our shares later?
Yes, by a transfer between the owners. Stamp duty may apply to the change, and the agreement should be updated at the same time.
Is this only for friends and family?
No. The same agreement suits investors buying together who do not want to set up a company or trust.

Buying Property Together?

Tell us who is buying and how, and we will outline what the agreement needs to cover.

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