What to do?

Always draw up a co-ownership agreement when buying together – even if you’re married. That will regulate the outcome should the property be sold. There’s no automatic entitlement at all to an “accounting” if, for example, each party did not contribute equally to the bonds due on the property.

Consider allocating shares in a property. Divide the shares equal to the percentage of the input by each party. For example, if two friends buy a property and one party contributed 40% of the start-up costs she has a 4/10th share and the other then has a 6/10th share as she contributed 60%. Then each party already owns according to their immediate input.

Considerations in such an agreement:

• Who is responsible for the bond, rates and taxes, insurance, maintenance, improvements, etc? What happens if you don’t uphold your end of the bargain and how does this affect your share ownership – regardless of what the title deed says? At what point are you compelled to agree to sell?

What happens when one of you dies or loses your job or simply wants out?

Who do you appoint to sell and transfer the property? How do you agree on a marketing and selling price? What happens if one of you doesn’t adhere to the terms of the agreement?

Lastly, get an attorney with a strong litigation and property law background to draft the co-ownership agreement.

This protects you against the risk of having to go to the high court to have your partnership “liquidated” at huge expense and effort.