At Aspiring Law, we’re helping more and more people with Property Sharing Agreements. Traditionally, Property Sharing Agreements were used by people in a relationship, but they can be used by family, friends or business partners considering buying a property together.

Property Sharing Agreements are drawn up on a case-by-case basis but typically cover some or all of the following:

• How the property is going to be owned and how each party’s ownership share is recorded on the title.
• How the property will be maintained including who is responsible for paying rates, insurance, improvements to the property and any other costs.
• Who is responsible for managing the property, including paying the bills, organising renovations and managing tenants if the property is rented.
• Details of how the mortgage is going to be paid. What is the process if one of the parties defaults on their mortgage repayments?
• What is the decision-making process?
• What happens if one of the parties decides they want to sell the property? A common clause included in most agreements is a right of first refusal so that instead of going to a third party or real estate agent, the parties involved in the agreement have first option.

Having a Property Sharing Agreement in place can help the owners avoid the aggravation and costs from potential disputes, particularly when it is time to sell the property. If you don’t have something in writing that clearly states your rights and obligations, then sharing a property with another person can potentially get very messy. 

If you, or anyone you know is considering buying a property with family or friends, please contact us to find out how we can help you with a Property Sharing Agreement.

Feedback, comments and questions are always welcomed – please feel free to e-mail me on [email protected]

T: 03 443 0900

W: www.aspiringlaw.co.nz

Lucy Conway specialises in family law at Aspiring Law.

Please remember, this information is designed as a general guide, and should not replace specific legal advice on a particular issue.