Times are continually changing and many first home buyers are exploring co-ownership arrangements with family members and friends to help secure a property. Co-ownership can help buyers pool resources together to overcome the hurdles of meeting equity margins to obtain bank lending for a purchase, and then to service the debt once lending is obtained.

 The decision highlights the need to have these matters agreed before a property is purchased, to avoid costly litigation in resolving disputes that can arise. Having the following points agreed before proceeding will be a good starting point to a Co-ownership Agreement:

• Contributions to the purchase price & acquisition costs;

• Property outgoings – rates, mortgage repayments, maintenance, repairs & the like;

• Ownership structure (there are different forms of legal ownership which can be utilised to your advantage);

• How the property & finances will be dealt with in the event one or more party(s) wish to exit the
  co-ownership arrangement;

• Matters related to the sale of the property or any buy-out proposals.

Another important consideration is when funds are being gifted or loaned by family members or friends. It is important any gift or loan is properly documented in way that protects the gift or loan from future relationship property claims or other future complications. Setting up these arrangements correctly, and in a clear and transparent manner at the outset can save you from issues later down the line.