Property co-ownership agreement

We prepare co-ownership and landholding agreements that set out how co-owners hold property, manage costs, and resolve disputes or exit the arrangement.

Buying property with another person creates a co-ownership relationship that is not governed by a single document unless one is prepared. Without a co-ownership agreement, disagreements about expenses, use of the property, or how to exit the arrangement can become difficult to resolve. We prepare agreements that give co-owners a clear framework for managing the property and for dealing with each other fairly when things change.

What is a property co-ownership or landholding agreement?

When two or more people purchase or hold property together, they do so either as joint tenants or as tenants in common. Joint tenants hold the property equally and a right of survivorship applies, meaning the surviving owner takes the whole property on the death of the other. Tenants in common hold defined shares in the property that can be held in unequal proportions and can be dealt with independently, including by gift or bequest. A co-ownership or landholding agreement records the shares held, how outgoings are to be met, how the property is to be used and managed, and what happens if one owner wants to sell or exit the arrangement.

What is the difference between joint tenancy and tenancy in common?

Joint tenants each hold an undivided equal interest in the whole of the property, and on the death of one joint tenant the surviving tenant takes the entire property by right of survivorship. Tenants in common hold defined shares that can be in unequal proportions and that pass under each owner’s will or intestacy on death, rather than to the other co-owner. The choice between the two forms of ownership should be made with advice on the estate planning and financial implications.

What should a co-ownership agreement cover?

A co-ownership agreement should cover the shares held by each party, how mortgage repayments, rates, insurance, and maintenance costs are to be met, what happens if one party cannot or will not meet their obligations, and how the property is to be dealt with if one party wants to sell. It should also address what happens on the death or insolvency of a co-owner, and how disputes between the parties are to be resolved.

Structure recorded at the outset, before disputes arise.

Exit mechanisms that give co-owners a way out without court.

Shares and obligations recorded accurately to reflect the arrangement.

Co-owning property without a written agreement is a risk that is easy to avoid.

Property co-ownership creates a legal relationship that will need to be dealt with when circumstances change. A co-ownership agreement prepared at the outset gives all parties a clear framework and reduces the risk of expensive disputes.

Co-owning property without a written agreement leaves the arrangement undefined.

You are purchasing property with another person, or you already co-own property without a written agreement. There is no document that records what shares each party holds, how costs are to be met, or what happens if one party wants to exit. When circumstances change, as they often do, the absence of an agreement makes disputes harder and more expensive to resolve.

We will advise on the appropriate form of co-ownership and the shares to be recorded.
We will prepare a co-ownership agreement that covers costs, management, and obligations.
We will include exit mechanisms and buy-out provisions tailored to your arrangement.
We will advise on what happens on death, insolvency, or default by a co-owner.

You trust the person you are buying with, but you know that trust alone will not be enough if things change.

You are buying property with someone else and the arrangement makes sense right now. But what happens if one of you needs to exit, stops contributing to costs, or circumstances change in ways you cannot predict? Without a written agreement, the answer is a court application that is expensive and damaging for everyone involved. You want the arrangement documented at the outset so there is a clear framework if things change.

What's included in your co-ownership agreement service

Advice on joint tenancy versus tenancy in common.
Co-ownership agreement preparation covering shares, costs, and management.
Buy-out and exit mechanism drafting.
Provisions for death, insolvency, and default.
Dispute resolution framework.

What goes wrong when co-ownership arrangements are not documented?

Co-owners who do not have a written agreement regularly find themselves in dispute when one party wants to sell and the other does not, or when one party stops contributing to mortgage repayments or outgoings. Without an agreement, the only mechanism for resolving the dispute may be an application to the court for a partition or sale, which is expensive and time-consuming for both parties. Unequal contributions that were never formally recorded can also be difficult to prove when the arrangement breaks down.

Here is how we document the arrangement to protect both co-owners.

We advise on the appropriate form of co-ownership and the shares that should be recorded to reflect the parties’ actual contributions and intentions. We prepare a co-ownership agreement that covers outgoings, management obligations, and what happens when circumstances change. The agreement includes exit mechanisms so that either party has a clear path if they want to exit the arrangement, without the need for court proceedings.

Three steps to a documented co-ownership arrangement.

Structure agreed, agreement prepared, co-ownership documented correctly.

Advise on structure.

We advise on the form of co-ownership that suits your arrangement and the shares that should be recorded to reflect contributions and intentions.

Draft the agreement.

We prepare a co-ownership agreement covering costs, management, exit mechanisms, and provisions for death, insolvency, and default.

Execute and record.

We finalise the agreement and advise on any steps needed to record the shares correctly on the title.

Property lawyers experienced in co-ownership agreements and landholding structures across South Australia.

Co-owning property with another person is a significant commitment, and the relationship between co-owners can change in ways that are difficult to predict at the outset. We prepare co-ownership agreements that give parties clarity about their rights and obligations, and a practical framework for managing the property and resolving issues without court involvement. We have acted for co-owners in a range of arrangements, from family members purchasing property together through to commercial property landholding structures.

We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

Ready to document your co-ownership arrangement?

How to co-own property without conflict, confusion, or costly mistakes

You’ve been told to make a family trust election. Here’s what that actually means.

Changes to trust taxation in the Federal Budget: Is there still a case for keeping a family trust in my structure?

How we built our AML/CTF compliance into the way we already work

Tagged 280