Did you know you can own a house with a friend, family member, or partner without buying the whole thing yourself? Joint property ownership lets two or more people share legal title, mortgage payments, and any future profit. It’s a popular way to split costs, help a relative, or invest together.
There are two main ways to hold a property together: joint tenancy and tenancy in common. In a joint tenancy, each owner has an equal share and the right of survivorship – if one person dies, their share automatically passes to the remaining owners. Tenancy in common lets owners hold different percentages and doesn’t include survivorship, so a deceased owner's share goes to their heirs.
Choose the structure that fits your situation. If you want the property to stay within the surviving owners, joint tenancy is simple. If you need flexibility – for example, one partner contributes more money – tenancy in common lets you record exact percentages.
Set up the ownership in the sales contract and the title deed. Make sure the mortgage lender knows who’s on the loan; most banks require all owners to sign. A clear written agreement covering who pays what, how repairs are handled, and what happens if someone wants out can prevent disputes later.
In a joint tenancy, the surviving owners instantly own the whole property. No probate is needed, which speeds up the transfer and saves money. With tenancy in common, the deceased’s share becomes part of their estate. Their heirs inherit the share, which could bring a new co‑owner into the mix.
If you’re in a tenancy in common and don’t want the property to end up with strangers, consider a “right of first refusal” clause in your agreement. This gives the remaining owners the chance to buy the share before it’s offered to anyone else.
Taxes also matter. When you sell a jointly owned home, each owner reports their share of the gain on their personal tax return. If one owner dies, the step‑up in basis can reduce capital gains tax for the heirs, but the rules differ between joint tenancy and tenancy in common. Talking to a tax adviser early can save you surprise bills.
Finally, think about what you’d do if someone wants to leave the partnership. Options include selling the whole property, buying the other’s share, or refinancing the mortgage to remove a name. Having a pre‑agreed exit plan makes the process smoother.
Joint property ownership can be a smart way to share costs and build equity together, as long as you understand the legal structure, set clear agreements, and plan for the future. Use the tips above to protect your investment and keep relationships strong.
Discover how married couples own property together, the legal types, implications for divorce, tax, inheritance, and real-world tips for avoiding pitfalls.