How To Buy a Shared Ownership Property

Co-Own.com.au Team


Buying a shared ownership property can be an excellent way to enter the property market or diversify your property portfolio.  We’ve put together this article that shows step by step how to buy a shared ownership property.
 

Here are the 7 steps for buying a shared ownership property:

 

Step 1: To Occupy Or Invest?


Step 2: Finding the Right Property


Step 3: Making an Offer


Step 4: The Co-Ownership Agreement


Step 5: The Shared Ownership Loan


Step 6: Settlement


Step 7: Managing the Shared Ownership Relationship


 
 
 

Step 1: To Occupy Or Invest?

 

Before you start looking for a suitable shared ownership property, you must first decide if you would like to Occupy or Invest in the property.

 
 

Step 2: Finding the Right Property

 

Once you have made your decision to Occupy or Invest, you can then start your search by using our portal. Just enter the suburb, city or state and the search results will then display all available shared ownership properties based on your search criteria.

 
If you're having trouble finding a property, please contact us using the form here, and a local co-own agent will be in touch to help you find your perfect property.

 

Step 3: Making an Offer


After the purchase price is agreed upon, the contract of sale will be drawn up using the title structure Tennants in Common, normally showing the ownership share being sold as a fraction. eg; 50/100, reflecting 50% ownership.
 

Important: When making an offer to purchase the property, you should include a special condition in your contract of sale, like the example below.

 
  • Subject to, all buying and selling parties agreeing to the living arrangements and conditions outlined in the Co-ownership Agreement.


A special condition like the above gives you the option to pull out of the deal if the Co-ownership Agreement can’t be agreed upon.

 

Step 4: The Shared Ownership Loan

 

If you require a loan for the property, your agent will then refer you to an approved co-own finance broker. Each of our approved brokers have been trained in shared ownership and will ensure that you and your co-owners loans are treated independently.


 

Step 5: The Co-Ownership Agreement

 

The next step is completing a Co-ownership agreement, this is the most important part of the transaction.

 
A member from our legal team will then be in touch to carefully go through the co-ownership agreement and address any questions or concerns you may have.
 
We've designed a unique Co-ownership Agreement that covers potential issues and protects both co-owning parties. The agreement sets out each parties legal rights and obligations, it also addresses any foreseeable issues and provides a means of dealing with them. All parties owning the property will need to agree to the co-ownership agreement before the sale can go through. 


 

Step 6: Settlement

 

This is by far the most exciting time for all involved. The Owner Occupier will take up residence in the property and the Owner Investor/s will start receiving rent based on their ownership. The Owner Investor will not have access to the premises unless organised with the Owner Occupier, as per the co-ownership agreement.


 

Step 7: Managing the Shared Ownership Relationship

 

It’s important to keep a healthy relationship between both co-owners. It’s advised that you use a property manager to manage the property and act as an unbiased mediator for both parties. The property manager would collect the rent owing to the Owner Investor/s, pay bills and coordinate any repairs and maintenance that is needed on the property.

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