There are certain specific legal implications in the co-ownership of a property, so before you make a purchase, it’s essential to consult a professional who understands the details. The team at WGC Lawyers in Cairns offers over fifty years of experience in helping locals navigate the complex legalities of owning a property with multiple parties. If you want to learn more about these considerations, including ownership structure, co-ownership deeds, mortgage liability, financial contributions and disagreements, read below. Contact one of our friendly team members today to learn more.
Cairns Law: What to Consider When Co-Owning
Here’s a look at several important factors to consider before purchasing a property with others.
Ownership Structure of the Property
You and the other parties must determine the structure of ownership to ensure everyone understands the allocation of shares. As a trusted property lawyer in Cairns, we can help you navigate the two options, which are:
- Joint tenancy: where shares in the property are equal, and you have the right of survivorship
- Tenancy in common: where shares are unequal and you do not have the right of survivorship
Drafting a Co-Ownership Deed
This formal document is a legally binding account of co-ownership, detailing your rights and responsibilities and those of the co-signer. A deed is important for providing transparency for all parties and preventing disputes. Rights and responsibilities come in many forms, including:
- Outlining the intended use of the property, such as investment or primary residence
- Determining how you can exit the arrangement or sell your shares
- Making clear the cost for repairs, maintenance and contributions based on share ownership
- Identifying clear strategies for dispute resolution
Mortgage Liability
Typically, most banks will require both you and the co-owner to assume joint and several liability for the mortgage on your property. This means each of you is responsible in equal measure for paying back the loan. As experts in Cairns law, we can ensure you understand your mortgage liability.
Your Financial Contributions
You must determine the specific amount you and your co-owner contribute to the financial aspects of the house. This will vary depending on your shares, and includes the:
- Deposit
- Mortgage
- Council rates
- Property Insurance
- Maintenance and upkeep
Managing Disagreements
One of the most important aspects of co-ownership to consider is formulating a plan to manage disagreements. An organised, agreed-upon strategy for managing conflicts will prevent issues with your property from impacting your relationship with friends and family.
Property Lawyer in Cairns: How We Can Help
Our expert team brings over fifty years of experience helping homeowners in Cairns understand the complex documents required in co-ownership. We bring compassion, professionalism and a dedication to helping you in any way we can.
Understanding your rights and responsibilities when co-owning a house with friends and family will help manage the complex process and prevent disagreements from compromising your relationships. The team at WGC Lawyers in Cairns offers professionalism and experience in managing this process. Contact us online today.