Thinking of Buying a Home with Someone Else? Consider How You’ll Own It.

Purchasing a home is one of the biggest investments you’ll make—and with house prices still pushing many to look at alternative options, buying alone isn’t always feasible.

We’re seeing more and more people team up with friends, family members, and partners to get on the property ladder. But before you start browsing listings together, it’s crucial to understand how shared ownership actually works—and how to protect your interests.

Joint Tenancy vs Tenancy in Common: What’s the Difference?

When two or more people buy property together, they usually hold it in one of two ways:

Joint Tenancy

  • Each owner has an equal, undivided interest in the property.

  • If one owner dies, their share automatically passes to the surviving owner(s) — this is known as the right of survivorship.

  • Joint tenancy is common for couples in committed relationships who want the surviving partner to inherit the property automatically.

Tenancy in Common

  • Each owner holds a distinct share (which doesn’t have to be equal).

  • You can leave your share to someone else in your Will — your share does not automatically transfer to the other owner(s) on your death.

  • Tenancy in common is often preferred by friends, siblings, business partners, or couples who want their share of the property to form part of their estate.

Which option is right for you depends on your relationship, your financial contributions, and your long-term intentions for the property. Either way, it’s vital that the ownership structure is correctly recorded on the title—and that any underlying agreement is properly documented.

Why You Should Have a Property Sharing Agreement

To avoid misunderstandings, we strongly recommend putting in place a Property Sharing Agreement. This is a legally binding document that clearly sets out how the property is owned, used, and eventually dealt with if one party wants out.

It can cover things like:

  • each person’s ownership share;

  • responsibility for mortgage payments and outgoings;

  • rules around improvements or renovations;

  • what happens if one party wants to sell, move out, or passes away;

  • dispute resolution mechanisms.

While you don’t plan for things to go wrong, having a clear agreement in place makes it far easier to resolve issues before they turn into legal disputes—and helps preserve the relationship.

Key Benefits of a Property Sharing Agreement

Clarity of ownership:
Helps determine who owns what and how profits (or losses) are shared if the property is sold.

Protection of interests:
Ensures each party’s rights and responsibilities are clearly set out from day one.

Financial stability:
Supports budgeting by clearly allocating expenses and obligations.

Legal certainty:
Provides a framework for resolving disputes, reducing the likelihood of costly court proceedings.

Not Just for First Home Buyers

Property sharing agreements aren’t just for first home buyers. They’re a smart choice in any scenario where two or more people own property together, including:

  • holiday homes or baches;

  • rental investments;

  • shared offices or commercial spaces;

  • storage sheds or garages.

Getting Help from Family?

It’s increasingly common for parents to help their children into their first home. That might look like:

  • gifting or lending money for a deposit;

  • acting as a guarantor on the mortgage;

  • buying the property together.

Each of these options carries different legal and financial implications, especially in relation to whether the child’s interest remains separate property or becomes part of a future relationship property pool. The way you document that support matters—both for your child’s future and for your own protection.

We’ve written more on this topic [here].

Let’s Talk

If you’re considering buying property with someone else—whether it’s a partner, friend, or parent—we can help you understand your options. We offer a free, no-obligation consultation through our online scheduler  (in-person or via Zoom), and we’ll even shout you a coffee if you come to see us.

To read more about how parties can help kids ‘get on the property ladder’, check out our blog here.

Will Downey