Given the increasing cost of buying real estate, many potential purchasers are having to pool their resources to buy property together.
This can be good for many reasons as the costs can be shared and you may be able to own or live in better premises than you may otherwise be able to afford on your own, but there are risks.
Co-ownership often is a joyful experience at the beginning but often, disputes can arise such as each co-owner has differing views on the approach to be taken on various matters, from the important to the quite petty.
If you have bought, or are thinking of buying, a property with others, then you should really have a Co-Ownership Agreement in place.
Co-Ownership Agreements often cover the following maters (and others):
- Ownership proportions
- Amounts contributed for acquisition costs
- How improvements to the property are made
- Agreed valuation mechanism for exit purposes
- Rights of first refusal / pre-emption
- Parts of the property / premises either co-owner may have exclusive use of (and those for common use)
- Contributions to expenses (insurance, rates, utilities etc)
- Responsibilities for tasks like mowing, maintenance, upkeep etc
- Dispute resolution procedures
- Estate planning considerations (for example a couple’s interest may be held as joint tenants, rather than tenants in common).
Other articles of interest regarding this topic include:
- Forcing the sale of land in NSW
- Can you just put a caveat on someone’s house?
- What is a Granny Flat Right?
- Downsizer superannuation contributions
FURTHER INFORMATION
For further information on co-ownership of property and the benefits of Co-Ownership Agreements, please contact McKillop Legal on (02) 9521 2455 or email help@mckilloplegal.com.au
This information is general only and is not a substitute for proper legal advice. Please contact McKillop Legal to discuss your needs.
