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ServicesProperty Sharing Agreements
Dec. 3, 2019
If you’re thinking about buying with family or friends, it’s a good idea to get a Property Sharing Agreement in place. At its most basic, this agreement will set out your contributions to the deposit and in what proportion you intend to own the house. For example, if you contribute 60% of the deposit and your sister contributes 40%, you may want to record in an agreement that you will own a greater share of the property.
A property sharing agreement may also include:
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Payment of outgoings (such as insurance and rates);
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Type of ownership to be registered on the Certificate of Title;
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The process to follow when selling;
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How long the arrangement is intended to last for; and
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If either party will have an option to purchase at the time of sale.
Buying a house is one of the biggest financial commitments you’ll ever make, so it’s a good idea to set out everyone's expectations early on through a written agreement. If anything goes wrong or if it comes to a dispute, you can look back to the agreement to confirm what you both agreed to.
If you want to discuss whether a property sharing agreement is right for you, contact our experienced property lawyers on property@becker.co.nz.
Nina Becker
Staff Solicitor
Disclaimer: The information contained in this article is general in nature and not tailored to your personal circumstances. It is only current as at the date posted and should not be relied upon as legal advice. If you require legal advice, please contact us for further assistance.