Frequently Asked Questions

Co-ownership

What is co-ownership?

Co-ownership Frequently Asked Questions (FAQ) – Co-Ownership

Co-ownership is when you buy a percentage of a property with a co-owner.

Are there any eligibility requirements?

Co-own.com.au only requires you to be an Australian resident eligible for a loan on your percentage.

What are the costs of buying a co-owned property?

Like buying outright, there are additional costs when buying a home. In addition to your deposit, you will need to cover your solicitor’s fees, the drafting of a co-ownership agreement, and mortgage arrangements. These costs expended will ensure your co-ownership is successful and secure.

Why buy shared ownership property?

The benefits are easy to see. You own part of your own home rather than paying rent with no return. Also, the deposit needed is much smaller than one needed to buy the home outright.

Can I purchase a 100% share straight away?

Technically yes, but this would defeat the point of co-ownership. If you can comfortably afford to pay for 100% of the property, then you should consider buying outright.

What is the difference between co-ownership and shared ownership?

Both co-ownership and shared ownership describe the same partnership in the property, both just using different terminology.

How much stamp duty will I pay?

Stamp duty is calculated on your ownership amount, not the entire property.

What states and territories do you service?

We operate Australia wide.

Do I need a real estate agent to sell?

Yes, you do. It's extremely important that the right steps are taken to ensure a safe and successful co-ownership relationship. All our agents have been trained in co-ownership dealings.

Can I list vacant land?

Sorry, we don't accept listings for vacant land.

Will I be eligible for my first home owners grant?

It most states and territories you will be eligible to the First Home Owners Grant for co-ownership purchases, however rules vary from state to state, so it is advised to get in touch with your states local conveyancer.

Do I need to know my co-owner?

Not at all, your co-ownership relationship is purely business. The co-ownership agreement sets out each parties legal rights, obligations and also addresses any foreseeable issues and provides means of dealing with them.

The Co-ownership Agreement

What happens if my co-owner defaults?

Read our article explaining the process here.

What if I want to change my co-ownership agreement?

If you would like to make changes to your co-ownership agreement, both current co-owners would need to agree on the change before it is made.

Can I change ownership roles?

There can only ever be one owner occupier for each property. If an owner investor wishes to change their ownership role, they would need the current owner occupiers approval and the co-ownership agreement amended accordingly.

However, if an owner occupier wishes to change roles to an owner investor, they can do this at any time without a vote. However, once they do switch roles, they will need a unanimous decision to switch back to an owner occupying role.

How long does the co-ownership agreement last for?

The co-ownership agreement lasts until both co-owners decide to change the agreement or sell the property as a whole.

Who managers a co-ownership property?

A property manager does more than just collect the rent and pay bills. We strongly recommend that you appoint one to ensure smooth management of your co-owned property. You can find one here.

How many people can make up one co-owner?

We only list properties with two co-owning parties. However, multiple people can make up one co-owning party.

Will my name be on the title?

Both co-owners will be on the properties title as tenants in common.

Do I have to use your co-ownership agreement?

Yes, we've designed a unique Co-ownership Agreement that covers potential issues and protects both co-owning parties.

What if my co-ownership dies?

In our co-ownership agreement, it states that both co-owners are to take out mandatory mortgage repayment insurance to cover a minimum of twelve (12) months. The deceased co-owners share will then be transferred as per their will or sold.

Can i keep pets and animals at a co-owned property?

The occupying co-owner may keep animals or pets at the property, however, the occupying co-owner will liable for the full cost of all damages occurred from this.

What if my co-owner doesn't pay rent?

A 2% daily interest rate will occur until the rent is paid in full. If no payments have been made within 30 days of the due date, legal action can be taken to retrieve any payments owing plus any accrued interest.

Can I renovate the property?

Co-owners are not to renovate, alter or add to the property without the written consent of each co-owner.

Can I use a co-owned property as a second security?

Both co-owners can not use the property as a second security under any circumstances. They would need to refinance and leave a minimum of 20% equity on their share of the property to access surplus equity.

Can I sub lease a co-owned property?

The owner occupier may sublease the property; however, they will be liable for all damages caused by the person. They would need to move to an owner investor role to share liability with their co-owner.

Can I give my property share away in my will?

We use the ownership structure Tenants in Common, meaning the co-owners retain control over their share of the property and reserve the right to transfer or sell their share to a third party or even give it away in a will.

Can I sell my share of the property?

You are free to sell your portion of the property at any time. However, the sale will be under the conditions of your co-ownership agreement. eg; Offering your co-owner the option to purchase your portion before listing it on an open market.

Can I force a co-owner to sell?

No, you can not force a sale using our co-ownership agreement. If you wish to sell, you must only sell your portion of the property. This is unless both parties agree to sell the property as a whole.

How many co-owners can buy a property?

We only list properties with two co-owning parties on our website, this way one party can occupy the property and the other can invest. It's also a common loan requirement that the property has a maximum of two co-owning parties.

Who is responsible for maintenance and repairs?

Expenses for the property are based on the percentage of the property you hold. A detailed list of each owner’s duties are outlined in the co-ownership agreement before entering the arrangement.

Mortgage and rent isn’t that more expensive?

Co-ownership is designed to keep both the initial and on-going costs of home ownership manageable and affordable.In many cases, the total monthly cost is the same as renting. With Co-ownership you only require a mortgage deposit on the share you are buying, not the full value of the home.

What percentage of the property can I buy?

We only list properties selling between 25% and 75% of the total properties value, as most lenders do require a minimum of 25% ownership to be held.

Does shared ownership mean living with another person?

This is a common misconception. Shared or co-ownership does not mean living with another person necessarily. It means that you own a share in the property, and you choose whether you want to be an occupier or investor of the property. The occupier will live in the home as their primary residence and the investor will hold the property for growth.

What happens when I want to sell?

This is when the co-ownership agreement becomes vital. Before the purchase is made, a clear arrangement will be drawn up with both party’s interests. However, it is usually the selling party who offers the co-owner the choice to purchase the property before its listed for sale. If they choose not to, the percentage of the property can be listed on the Co-Own.com.au subject to the conditions of the existing co-ownership agreement, meaning being sold as either an Owner Occupier or Owner Investor role.

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