Understanding property sharing agreements
If you’re buying a home with someone else, consider setting up a property sharing agreement. This is a document that sets out the rights and responsibilities of all co-owners.
While everyone goes into these types of arrangements with the best intentions, a property sharing agreement can help ensure each person’s interests will be protected even if something unexpected happens. When multiple parties are involved, there can be a number of scenarios to consider.
- If you’re contributing different amounts of money, what proportion of the home do you own?
- If you’re unable to keep up with repayments, what happens?
- If you’re buying with a partner, what happens if you separate?
- If you’re buying with friends or family members, what happens if someone wants to move out in the future?
- If you’re contributing to your child’s deposit but need the money back to support you in retirement, when will repayments begin?
A lawyer can draft up a property sharing agreement to suit your specific needs.