These days co-ownership is financially appealing to many people, and has over the years become increasingly popular. It is a good way to acquire property that you could possibly not have afforded to purchase on your own.
Co-ownership is a share or a percentage of the total, which means that the co-owners also have co-liability or joint liability and have obligations towards the entire the property, not just the section that the individual owner occupies.
When two people own property together in undivided shares, it is advisable to enter into an agreement which will regulate their rights and obligations and which states the terms and conditions of their ownership should they ever decide to go their separate ways.
This rule applies equally if you’re an unmarried couple, married out of community of property or just joint owners as partners in a property joint venture or even a holiday home.
If one of the co-owners does not pay his or her share of the debts, the remaining co-owners are all jointly and severally liable therefore. It is thus of the utmost importance to firstly choose your co-owners very carefully, and secondly enter into an agreement from the outset that sets out the terms and conduct rules for all involved.
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