A Checklist for Buying Property With a Partner or Friend

Buying property with a partner, sibling or friend can make home ownership achievable sooner, but joint ownership brings decisions that a solo buyer never has to make. How you hold title, how contributions are recorded, and what happens if one person wants out later all need to be agreed before you sign anything, not worked out after a disagreement arises. This checklist covers the practical steps for buying property with someone else.

Decide Between Joint Tenants and Tenants in Common

Australian property law offers two main ways to co-own a property. As joint tenants, each owner has an equal, undivided interest, and if one owner dies their share automatically passes to the surviving owner regardless of what their will says. As tenants in common, each owner holds a defined share, which can be equal or unequal, and that share can be left to anyone in a will rather than automatically passing to the co-owner. Couples buying together often choose joint tenancy, while friends, siblings or unequal financial contributors more often choose tenants in common. Your conveyancer can explain how each option affects your specific situation before the contract is signed.

• Confirm whether joint tenancy or tenants in common suits your relationship and contributions.
• Record any unequal deposit or ongoing contributions in writing before settlement.
• Check how each ownership structure interacts with your will and estate planning.
• Put a co-ownership agreement in place covering exit, sale and dispute scenarios.

Put a Co-Ownership Agreement in Writing

Beyond the title structure, a separate written co-ownership agreement sets out practical matters the contract of sale does not cover: who pays for what ongoing expenses, what happens if one owner wants to sell and the other does not, how a buyout would be valued and financed, and what happens if one person cannot keep up their share of mortgage repayments. This document is not part of the conveyancing process itself, but a solicitor experienced in co-ownership agreements can prepare one alongside your purchase, and having it ready before settlement means everyone starts on the same page.

Confirm How Finance Will Be Structured

Decide whether the loan will be held jointly, with both parties equally liable regardless of who contributed what deposit, and understand that most lenders require joint and several liability, meaning each borrower is responsible for the full debt if the other cannot pay. Get individual pre-approval assessments where possible so you both understand your borrowing capacity, and discuss upfront how unequal deposits or ongoing repayment contributions will be reflected in your ownership shares. The MoneySmart guide to buying a house covers general steps for organising finance that apply to joint purchases as much as solo ones.

Review the Contract and Title Together

Both buyers should review the contract of sale and any disclosure documents, not just the person who found the property or is dealing with the agent. Confirm both names, and the correct ownership structure, are recorded accurately on the contract and eventually the title, since correcting this after settlement is more complicated than getting it right from the start. If you are buying a first home together, check eligibility rules for any grants or concessions, since some schemes require all owners to meet residency or first-time buyer criteria.

Plan for What Happens If Circumstances Change

Relationships, friendships and financial circumstances change, and a good co-ownership agreement anticipates this rather than assuming everything will stay as it is at settlement. Cover scenarios like one owner wanting to move overseas, one owner losing their job, or a relationship breakdown between co-owners, and agree in advance on a process, such as a right of first refusal or an agreed valuation method, rather than leaving it to be negotiated under pressure later. If a relationship breakdown does involve family law considerations, this is general information rather than legal advice, and a family lawyer should be consulted for guidance specific to your situation.

Get Advice From a Broker if You Are Using One

If you are working with a mortgage broker to structure joint finance, make sure they understand the ownership arrangement you are planning so the loan structure matches it, particularly if contributions are unequal. Our guide on refinancing also covers what happens if one co-owner later wants to be removed from the loan and title, which is a common outcome for changing living arrangements between friends buying together.

Keep Clear Financial Records From the Start

Once you have settled, keep clear records of who has paid what toward the mortgage, rates, insurance and any repairs or improvements, even if you are confident the arrangement will run smoothly. A simple shared spreadsheet or joint account used only for property expenses makes this straightforward and avoids relying on memory if a dispute arises years later about who has contributed what. This is a small amount of ongoing admin compared with the cost and stress of trying to reconstruct contributions retrospectively if the co-ownership arrangement ever needs to be unwound.

If you are buying with a partner rather than a friend or sibling, it is still worth having the co-ownership conversation explicitly rather than assuming shared expectations, since verbal understandings between people in a relationship are just as easy to remember differently as those between friends.

Talk to a Conveyancer Before You Sign

Buying with someone else does not change the core conveyancing steps, but it does add layers that are worth discussing with your conveyancer before you commit to a property, particularly around how title will be held and what documentation should be in place alongside the standard contract. Getting a fixed-fee quote early means you both understand the costs and process from the outset, which helps keep expectations aligned between co-owners from day one.