Buying a property with another person can be a good way to share the cost of a home or investment. However, jointly owned property can also lead to disagreements when owners have different plans or financial situations.
In Perth, property owners have certain legal rights and responsibilities. Understanding these rights can help you avoid unnecessary disputes and make better decisions. If you are facing a problem with jointly owned property, speaking with a Jointly Owned Property lawyer in Perth can help you understand your legal options.
What Is Joint Property Ownership?
Joint property ownership means that two or more people own the same property. The owners could be married couples, family members, friends, business partners, or investors.
In Western Australia, property can generally be owned as either joint tenants or tenants in common. The type of ownership is important because it affects what happens if an owner wants to sell, transfer their interest, or passes away.
Before making any decision about a jointly owned property, it is important to check the property’s title and understand how ownership has been registered.
What Is Joint Tenancy in Western Australia?
Under a joint tenancy Western Australia arrangement, two or more people own the property together. Generally, the owners do not have separate shares recorded in the same way as tenants in common.
One important feature of joint tenancy is the right of survivorship. This means that when one joint tenant dies, their interest in the property generally passes to the surviving joint tenant or tenants.
For example, if a husband and wife own a property as joint tenants and one of them dies, the surviving owner will generally receive the deceased owner’s interest in the property.
This can be important when making a Will and planning your estate.
What Is Tenancy in Common?
Tenancy in common is another form of property co-ownership Perth residents may use.
With this type of ownership, each owner has a separate share in the property. The shares do not necessarily have to be equal.
For example, one person may own 70% of a property while another person owns 30%. The ownership percentages can reflect how much each person contributed or what they agreed when purchasing the property.
Unlike joint tenancy, the owner’s share does not generally automatically pass to the other owners when they die. Their share may form part of their estate and be dealt with under their Will or applicable succession laws.
Can One Owner Sell the Property?
One of the most common problems with jointly owned property occurs when one owner wants to sell but another owner wants to keep the property.
An owner generally cannot simply sell the entire property without considering the rights of the other registered owners.
The situation can be different depending on whether the property is held as joint tenants or tenants in common. A tenant in common generally has an individual interest that can be transferred, subject to the relevant legal requirements.
Because selling or transferring an interest can have significant legal and financial consequences, it is important to obtain legal advice before signing an agreement.
What Happens When Co-Owners Disagree?
Disagreements between property owners can happen for many reasons. One owner may want to sell while another wants to continue living in the property. There may also be disagreements about mortgage repayments, repairs, renovations, rental income, or property expenses.
These situations can become stressful, particularly when one owner believes they have contributed more money than the other.
The first step is to understand the ownership structure and review any agreements between the owners. Keeping records of mortgage payments, property expenses, renovations, and other contributions can also be helpful.
A Jointly Owned Property lawyer in Perth can explain your rights and help you consider possible solutions. Depending on the circumstances, negotiation or mediation may help resolve the disagreement without going directly to court.
Who Is Responsible for Property Expenses?
Co-owners should have a clear understanding of how property-related expenses will be shared.
These expenses may include mortgage repayments, council rates, insurance, repairs, maintenance, strata fees, and property management costs.
Problems can occur when one owner stops contributing or regularly pays more than their agreed share.
If this happens, it is important to keep evidence of all payments and communications. Whether one owner can recover money from another will depend on the individual circumstances and any agreements between them.
What If One Owner Wants to Keep the Property?
Sometimes one owner wants to keep the property while the other wants to leave.
A possible solution may be for one owner to buy out the other’s interest. This can involve obtaining a property valuation, arranging finance, agreeing on the value of the departing owner’s share, and completing the necessary legal documentation.
Before agreeing to a buyout, both parties should understand the financial and legal consequences.
How Can You Protect Your Rights?
The best time to discuss co-ownership rights is before problems arise.
If you are buying property with another person, consider having a clear agreement about:
- Each owner’s share of the property
- Mortgage repayments
- Rates, insurance, and repairs
- How rental income will be divided
- What happens if someone wants to sell
- What happens if an owner dies
- How future disagreements will be handled
Clear agreements can reduce misunderstandings and make it easier to resolve problems later.
Get Legal Advice About Jointly Owned Property
Joint ownership can be a practical arrangement, but it is important to understand your legal rights from the beginning. Problems can become more complicated when co-owners disagree about selling the property, financial contributions, or ownership shares.
If you are dealing with a dispute or are unsure about your rights, getting advice early can help you understand your options.
Property Settlement Lawyers Perth can provide guidance on jointly owned property matters and help you understand the steps that may be available in your situation.
Remember, every property dispute is different. This article provides general information only and should not be considered legal advice. For advice based on your specific circumstances, speak with a qualified property lawyer in Western Australia.