In this article, our professional property rights lawyers explain all you need to know about property co-ownership. We believe that with adequate knowledge about private property, the law relating to personal property, common law principles, and your general legal rights, you will be well-positioned to make good choices as a property owner.

Getting Started with Real Property.

When it comes to trying to get a foothold on the property ladder as a first-time home buyer, we can all agree that it is one of the most challenging times in recent history. Because of rising home costs and stagnant wage growth, it takes the typical millennial thirteen years to accumulate enough money for a down payment on a house or apartment.

With over 90 percent of millennials wanting to own their own house yet 50 per cent of you feeling apprehensive about the future, we have prepared enough guides and instructions to assist you in navigating the home-buying process.

By providing advice that is both sound and up-to-date in terms of property law, our mission is to broaden access to the American dream of house ownership. Their aim is to be the industry leader in tackling the problem of housing affordability in major cities all over the world, and they are working to create a society in which renters and owners are on equal footing.

There are a number of property platforms that are centered around property co-ownership and provide a service that assists you in purchasing property together with another party. However, it is always preferable to always consult Chamberlain’s property lawyers for adequate guidance on whatever method or approach you to want to take in order to own a property piece.

What does it mean to co-own a property?

Co-ownership of real estate refers to the situation in which more than one individual holds an ownership stake in the same piece of property. By sharing this information with others, you may be able to reduce the cost of a deposit (as well as other unexpected costs associated with purchasing a home, as explained in our blog posts here); by combining multiple incomes, you may be able to qualify for a loan or mortgage; and by paying off your mortgage on your own home rather than paying rent to pay someone else’s mortgage.

In terms of the law

Tenancy in common and joint tenancy are the two primary forms of co-ownership that can be utilized when purchasing real estate together. Joint tenancy ownership is a kind of property ownership that is typically utilized by co-owners who are married or who are in a committed relationship. 

When purchasing real estate in this manner, the purchasers will jointly own one hundred per cent of the property, and in the event that one of the co-owners passes away, the other co-owner will take sole ownership of the land.

Due to the fact that it is the kind of co-ownership that allows for the greatest amount of flexibility, tenancy in common ownership is the type of co-ownership that is most frequently employed by investors and parties who are not linked to one another. 

In a co-ownership arrangement, parties can own any proportion of the property they like and the rules, as well as their interests and duties, are spelt out in the co-ownership agreement. After the passing of a co-owner, that person’s portion of the property will be distributed in line with the terms of their will.

What exactly is meant by the term “co-ownership agreement”?

When a piece of property is acquired by many parties, it is common practice to have each party enter into a co-ownership agreement as a means of formally documenting their understanding of the relationship between themselves and the other parties. 

Co-ownership agreements are able to be drafted by property lawyers for virtually any circumstance, including the purchase of a home with a friend or family member, the formation of a partnership with investors to aid with the acquisition of a property, or even the joint renovation of a house.

It is very vital that you have an expert property lawyer assist you in creating a co-ownership agreement in order to guarantee that all parties are fully informed and protected. This may be accomplished with the assistance of a property lawyer.

  • Disputes between owners are dealt with effectively;
  • The co-owners understand how the property is to be occupied and managed; 
  • The co-owners understand how the financing arrangements are structured and their liability for any loan defaults; and
  • The co-owners are able to meet to discuss important matters relating to the property.

Why do I need to sign a co-ownership agreement if we are going to buy anything together?

A co-ownership agreement clarifies the amount that each co-owner is contributing to the purchase and, more crucially, lays down a plan for what will happen in the event that one of the owners passes away, their marriage dissolves, or some other catastrophe occurs.

A co-ownership agreement also helps in precisely defining the intended purpose of the acquisition, such as whether it is to be used as an investment or to be occupied by one or more co-owners.

Before engaging in a co-ownership arrangement, you should get the counsel of a tax professional if the property is being acquired with the intention of turning it into an investment.

The advantages and disadvantages of group financing

The primary advantage of asking for group financing is that, by combining your individual salaries, you will, in the majority of cases, be able to qualify for a larger loan amount than would be available if you applied for financing on your own.

As a form of collateral for the loan, the lending institution will take out a mortgage on the portion of the property owned by each co-owner. To the exception of situations in which the lender requires each co-owner to offer a cross guarantee to the lender, each co-owner is liable for paying their respective share of the loan (which is usually a requirement for group finance).

When this is required, then the lender can make the non-defaulting co-owner responsible for the defaulting co-proportion owners of the loan, and the co-owner agreement gives the non-defaulting co-owner rights to recover this from the defaulting co-owner. In other words, the lender can force the non-defaulting co-owner to pay the defaulting co-share owners of the loan (e.g by selling the property).

The co-owners agreement may also include provisions that restrict the ability of individual co-owners to borrow more funds from the lender without first obtaining authorization.


For all you need to know about the Australian legal system or the Western legal systems as a whole when you are purchasing property or trying to sell one, our experienced property lawyers at Chamberlains can help you navigate the process with clarity so that you can know what to do at the right time and how to do it.

You wouldn’t have to bother about the property law committee decisions, the same property issues, your local government law council actions, or the necessary things you need to do in the bidding contract, we will help you through it all.