From July 1 this year, friends, siblings and other family members will be able to jointly apply for the First Home Guarantee and Regional First Home Guarantee. Previously, this scheme was only available to individuals who were single, married or in a de-facto relationship.
The schemes will also be available to non-first home buyers who have not owned a property in the past 10 years.
So, what do people purchasing a property together need to consider?
For anyone that is looking to purchase property with someone such as a friend, sibling etc. there are a few things that need to be considered.
Structure of ownership:
Structure of ownership is incredibly important any time you are purchasing a property. If you buy the property as tenants in common, meaning that you both own a share of the property, say 50-50, what happens if one person dies? What happens if one person wants to sell? These are all the things that need to be considered at the time of purchasing the property.
Co-Ownership agreement:
A Co-Ownership agreement may be a useful safeguard when parties decide to purchase a property together.
What is a Co-Ownership Agreement?
A Co-Ownership Agreement enables two or more parties, who are purchasing a property together, to enter into a legally binding document outlining the rights and duties of each party.
What should be included in a Co-Ownership Agreement?
A Co-Ownership Agreement will vary depending on the structure of ownership created by purchasing the property.
However, things to consider within your Co-Ownership Agreement include:
• What happens if a co-owner wants to sell?
• Who determines how/when the property is eventually sold?
• Who is responsible for the expenses and contributions and in what proportions are they paid?
• Who decides if works are to be carried out to the property?
• What happens if a co-owner loses capacity?
• What happens if a co-owner defaults on payment?
• How are disputes to be resolved?
Co-Ownership Agreements can greatly aid in the resolution of these issues.
GET HELP FROM US
Our team at Dimarco Garland lawyers has experience in dealing with matters relating to co-ownership agreements. If you require assistance or would like further advice in relation to a co-ownership agreement and how it can help you, please contact Alison Garland and the team at Dimarco Garland Lawyers.
*This article is not intended to provide legal advice. Please contact our office to discuss your specific circumstances.