Core Legal | Masterton & Wellington Property Lawyers

With property prices stabilising but living costs continuing to rise, more New Zealanders are choosing to buy property together. Whether it’s parents helping children into their first home, siblings pooling resources, or friends purchasing jointly, co-ownership arrangements are becoming increasingly common across Masterton, Wellington, and the wider Wairarapa.

While buying a property with family or friends can make home ownership more achievable, it also creates legal and financial risks if expectations are not clearly documented from the outset. At Core Legal, we frequently see disputes arise not because people intended to fall out, but because nothing was put in writing at the beginning.

Common Co-Ownership Disputes We See

One Owner Wants to Sell

It’s common for circumstances to change. One co-owner may want to sell their share to buy with a partner or relocate for work, while the other wants to stay put but cannot afford to buy them out. Without an agreement, this can lead to forced sales or costly court proceedings.

Unequal Contributions and Renovations

In shared ownership situations, one party may contribute more time, labour, or money to renovations or maintenance. If expectations around payment or ownership adjustments are not discussed and recorded, disputes can arise when the property is sold.

Death or Illness of a Co-Owner

Where parents or grandparents contribute to a purchase, unexpected death or declining health can create significant uncertainty. Executors may struggle to determine what portion of the property belongs to an estate, delaying administration and placing strain on surviving co-owners who may not be able to fund a buy-out.

Why a Property Sharing Agreement Matters

A Property Sharing Agreement (also known as a co-ownership agreement) is one of the most effective ways to protect everyone involved. It sets out each party’s rights, responsibilities, and intentions in relation to the property, reducing the risk of misunderstandings and disputes later.

A well-drafted Property Sharing Agreement typically covers:

• Ownership structure – who owns the property and in what shares

• Exit strategies – what happens if one party wants to sell, including valuation methods

• Death or relationship changes – how shares are dealt with if someone dies, separates, or enters a new relationship

• Financial responsibilities – mortgage payments, rates, insurance, utilities, and maintenance

• Improvements and renovations – how costs and benefits are treated if one party contributes more

These agreements are particularly important where the property is owned as tenants in common, rather than jointly, and where family trusts or estate planning considerations are involved.

Get Advice Before You Buy

Once a dispute has arisen, it is often far more difficult (and expensive) to resolve what is “fair.” Putting a Property Sharing Agreement in place at the time of purchase is a practical investment in protecting relationships, finances, and peace of mind.

At Core Legal Masterton and Wellington, we help clients structure co-ownership arrangements that are clear, fair, and legally enforceable—tailored to your specific situation.

If you’re considering buying a property with family or friends, contact Core Legal to ensure you’re protected from day one.

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Frequently Asked Questions (FAQ)

Do I need a Property Sharing Agreement if I trust the other owners?
Yes. Trust doesn’t prevent misunderstandings or future changes in circumstances. A written agreement protects everyone and preserves relationships.

Is a Property Sharing Agreement the same as a prenup?
No. A Property Sharing Agreement applies to co-owners who are not in a qualifying relationship. Couples in romantic relationships usually require a Contracting Out Agreement.

What happens if one owner wants to sell and the other doesn’t?
Without an agreement, disputes may end up in court. A Property Sharing Agreement sets out clear processes for buy-outs or sale.

Can parents protect their contribution when buying with children?
Yes. Contributions can be recorded as loans, ownership shares, or subject to specific repayment terms in the agreement.

When should the agreement be signed?
Ideally before settlement, or at the same time as purchasing the property.