Co-Ownership Of Property: What Are The Risks?
Category Property Thought Of The Week
Buying property with someone else often makes financial sense. Examples of co-ownership include partners buying their first home together or friends sharing ownership of a holiday house.
Co-owners of a property do not hold separate title to a physically delineated part of the property; each co-owner holds an undivided share in the whole property. This means that all co-owners have to act jointly in decision-making.
In practice, disputes often arise when one owner wants to sell, or regarding maintenance of the property and incurring expenses. Before buying a property, purchasers should seek advice on co-ownership agreements, how property debts will be handled, tax aspects and the best structure to use for the purchase.
Ask a property professional at STBB to assist before putting pen to paper.