What You Should Know About Living Under a Co-Ownership Agreement


Before finalizing your decision to purchase a co-owned property, it makes sense to know the ownership pattern. When it comes to co-ownership, you can easily get confused, thanks to the questions that arise along the way.

Firstly, you should know the different types of co-ownership patterns. This would negate any confusion in the coming years. You may purchase a property jointly with your sibling or spouse but the norms may be different in that case. Visit this page if you seek professional consultation and want to clarify your doubts before making your purchase.

In this post, you will get to know everything about the co-ownership of properties. This will eventually help you make a sensible investment in real estate.

What Is Co-Ownership Of Property?

Co-ownership refers to a module of property ownership where two or more people jointly purchase a home. Several reasons exist behind co-ownership or joint ownership, including succession preferences, transaction conveniences, benefits of taxation, etc.

Presently, there are different types of joint ownership agreements. Each of the owners of this type of property is called a co-owner. Simply put, two people can be the co-owners of property in case they share the asset between themselves.

It is legal for a co-owner to transfer his or her part of ownership to another person–even to a stranger. In this case, the transferee would become the co-owner of the property.

When Is A Co-Ownership Of Property Signed?

A property sharing agreement, also termed co-ownership agreement, is legally signed between the owners of a property. The primary purpose of this agreement is to highlight the legal right related to property ownership and the responsibilities of the owners. Note that you can own both residential and investment properties through co-ownership.

Typically, co-ownership agreements for a property are signed between the following parties.

  • Two or more people are willing to invest in real estate.
  • Parents and children can co-own property and reside in it together.
  • At times, parents and their children co-own properties. In this case, the parents can provide financial assistance to their children for making the purchase.
  • If an unmarried couple lives together, they can co-own a property.
  • If a particular party owns an apartment or a house, and another party is interested in owning the property partially, he or she may get into a co-ownership agreement.

A co-ownership agreement provides legal security to all the parties signing the document. Besides, this type of deal can prevent misunderstandings and conflicts. Most importantly, the agreement would define how to handle potential disagreements in the future.

Issues That Co-Ownership Agreement Should Address

A professionally drafted agreement for property sharing must answer the following points:

  • The party that would be holding the title.
  • The party that would purchase the property.
  • The percentage of the property that each party would own
  • The person who would make the down payment while purchasing the property.
  • The party responsible for paying the mortgage loan amount.
  • The method by which the mortgage payment is supposed to be divided.
  • The outcome in case of the demise of one of the property owners.
  • The process of dividing insurances, taxes, and other payments to be made.
  • The procedure to follow if only one of the parties is interested in selling the property.
  • The extent to which each owner would be liable regarding maintenance and cleaning.

Different Types Of Co-Ownership

Here are the three most common types of co-ownership:

1. Tenancy In Common

In this kind of property ownership, no specific mention is made about the property share if a purchase occurs. These co-owners are termed as tenants-in-common. Each of these co-owners enjoys an equal right over the asset while they are alive.

After the demise of one of the co-owners, the ownership of the property would not automatically pass on to the other co-owner. Instead, the property would be divided based on the terms and conditions agreed upon earlier.

2. Joint Tenancy

In a joint tenancy agreement, every tenant has an equal interest in the asset through a single sale deed at the same time. The right of survivorship defines the idea of joint ownership. In case a co-owner passes away, the surviving tenant automatically inherits the property rights.

However, you should note that legal recognition is necessary for the ownership of a property with joint tenancy. The law would consider it to be a tenancy in common if nothing specific is mentioned.

3. Tenancy In Entirety

Properties owned by people who are legally married enjoy this type of ownership. The right of survivorship is deployed in case of tenancy in its entirety. Therefore, the other owner would automatically own the rights to the property if one of the co-owners passes away.

Similar to joint tenancy, this type of co-ownership also requires the house to be occupied through one sale deed at the same time. Moreover, the interest in this type of property should also be equal.

It’s also not possible for one of the co-owners to sell the property if the other person is not involved in the transaction. However, the contract would be broken if there’s a mutual agreement, death, or divorce.

What Are The Rights Of A Co-Owner?

A co-owner of the property would enjoy three essential rights of ownership. These are:

  • Right to use
  • Right to possession
  • Right to dispose of the property share

Note that you have every right to take back the possession if you are deprived of your right to the property as a co-owner.


Co-owning a property comes with several benefits, including tax rebates. This explains why married people prefer to co-own their property. However, you need to understand several technical and legal aspects.

If you’re new to the property market, it’d be wise to seek professional assistance from experts. They would give you valuable advice regarding the right model of co-ownership.