CO-BUYING THE DOS AND DON’TS

Co-buying is a business deal, whether it’s with a stranger or a friend, so ensure everything is set out clearly in a legal agreement.

Allow for changing circumstances – what happens if one owner wants to move out sooner rather than later, if their careers or relationships change? If the remaining party cannot afford to buy them out, a forced sale may be the only option.

Remember co-buyers will be jointly and severally liable if one party defaults on mortgage payments – so if one stops paying his or her part of the mortgage, the other will have to meet the full amount.

Consider a formal declaration of trust to record the amount each buyer is contributing to the deposit, how repayments are to be split, and how profits on any sale are to be distributed.