Co-Owning Property in NSW? What to Sort Out Before You Buy Together
- Jackie Atchison
- Jun 14
- 1 min read
Intro
Co-ownership is on the rise—especially with rising property prices. Pooling resources with someone you trust can help you get into the market or invest together. But it’s critical to have legal clarity before you buy.
Why It Matters
Most co-ownership issues arise when things change. One person wants to sell. Someone can’t contribute anymore. A relationship changes. Without a co-ownership agreement, there’s no legal roadmap to follow—which often leads to dispute.
Choosing the Right Ownership Structure
Joint Tenants: both own the entire property. If one dies, the other inherits automatically.
Tenants in Common: each owns a set share, which can be sold or left in a Will. More flexibility, but more risk if things go wrong.
What a Co-Ownership Agreement Should Cover
Initial contributions (deposit, legal fees, stamp duty)
Ongoing costs (mortgage, rates, maintenance
Living arrangements and exclusive use
Rules for exit: how and when an owner can sell their share
Dispute resolution procedures
Future-Proofing Your Agreement
Think about what happens if one person:
Gets married
Loses their income
Wants to renovate
Wants to rent out their share
A well-drafted agreement can address these upfront.
Tax and Duty Considerations
Buying out a co-owner or restructuring ownership can trigger stamp duty or CGT. The agreement should outline what happens financially if one person exits.
Tip
You can include a clause requiring co-owners to offer their share to the other first before selling to a third party.
What to Do Next
Speak to your lawyer before signing a contract. Get clarity on the title structure, and ensure your agreement is written before settlement. I help co-owners set clear terms from day one—so expectations stay aligned.
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