Owning Property Jointly - The Rewards, The Risks, and The Remedy
Category Seller Guides
There can be big advantages to buying property jointly but be aware of the risks and take steps to lessen them before you put pen to paper.
The problem comes if there is a falling-out with your co-owner. Perhaps you come to blows on your usage of the property, or on the incurring of expenses, or on whether it is time to sell, or perhaps you are splitting from each other entirely. That could be a business partnership terminating, or a marriage ending in divorce, or (as in the case we discuss below) a failed romantic relationship. Our courts must regularly resolve bitter joint-ownership disputes between ex-spouses, ex-friends, ex-colleagues, siblings, and close relatives - none of whom dreamed they might ever come to blows when they first hatched plans to buy property jointly.
If a dispute does arise, how will you resolve it? And if you split up, who keeps the property? Or do you sell it jointly, and if so how, and when? How will the bond and other property debts be settled?
The good news is that by and large the risk of dispute can be reduced with a bit of foresight and planning. Preferably with professional advice and assistance - this is after all likely to be an important asset in both your estates.
Let's have a look at a recent High Court case to illustrate
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Author: Harcourts Dunn