It is becoming more and more common these days for property to be held in joint ownership – not just by spouses, but by family members and even friends and workmates.
However have you thought about what would happen if:
- one of the property owners dies – Should the surviving owner have the first right to purchase the other share from the deceased’s estate? Or should the deceased’s estate have the right to order that the property be sold?
- one of the owners falls into dire financial circumstances and needs to sell their interest – Again, should it be sold to other owner, or should the property be sold on the open market?
- the property needs substantial repair and renovation – Are all owners responsible for helping out? Is one owner responsible for organising the tradespeople?
These are all issues that can be addressed in a co-ownership agreement. Having such an agreement in place will avoid any issues ending up in court.
Blogs:
Are you buying a property with friends or family members? What you need to know about co-ownership (Vicki Stokes, May 2016)
The importance of having a co-ownership agreement (Melissa Lammers, August 2018)