Author: Stefan Hougaard – STBB
8 May 2018
CO-OWNERSHIP OF PROPERTY: WHAT ARE THE RISKS
Buying property with someone else often makes financial sense. Examples of co-ownership include partners buying their first home together or friends sharing ownership of a holiday house.
Co-owners of a property do not hold separate title to a physically delineated part of the property; each co-owner holds an undivided share in the whole property. This means that all co-owners have to act jointly in decision-making.
In practice, disputes often arise when one owner wants to sell, or regarding maintenance of the property and incurring expenses. Before buying a property, purchasers should seek advice on co-ownership agreements, how property debts will be handled, tax aspects and the best structure to use for the purchase.
Ask a property professional at STBB to assist before putting pen to paper.
Stefan obtained his LLB degree from Stellenbosch University and is an admitted Attorney of the High Court of South Africa.
He joined STBB as part of the Claremont litigation department and practices in commercial and general litigation, with a focus on contractual, property, rental and eviction disputes.