Property Co-Ownership Disputes

To find out how to handle property co-ownership disputes, we must first define what property co-ownership is. Property co-ownership is, as the name suggests, when two or more people share the ownership of a property. This is done via the following steps;

1. Agreeing to be registered on the Title as co-owners; or
2. Combining your money to place a deposit; or
3. Combining your borrowing power to gain the appropriate loan.

Property co-ownership has plenty of positives. It of course lets you split the costs, literally all of them. This means you would be able to take your place in the property market at a significantly smaller cost (dependent on the number of co-owners) then usual.

Of course, as with any purchase of property there can be negatives and disputes can arise. Disputes occur about numerous things including but not limited to the following:

4. Whether to sell;
5. Whether to refinance a mortgage;
6. Whether an owner can be bought out;
7. How to split income and costs of owning the property;
8. Mortgage repayments and who is responsible; and
9. Who lives in the property.

If you should encounter a dispute, in regard to property co-ownership, your first step should always be to contact the other party/parties involved, in an attempt to settle the dispute via a negotiation off the record. If you are unable to resolve your dispute in this manner, then you can apply to the Victorian Civil and Administrative Tribunal (VCAT) to determine the dispute case. The purpose of the VCAT is to provide a low cost, accessible and efficient tribunal with a focus on resolving disputes. The VCAT can hear your case, but cannot give you legal advice. If you wish to employ a lawyer or alike, you must ask the VCAT for permission to do so.

Importantly the best way to avoid any co-ownership disputes is to enter into a co-ownership agreement when you first purchase the property. This agreement would deal with all the issues that might arise during the co-ownership and set out mechanisms to avoid those disputes.

If you have any more questions in regard to property co-ownership agreements or property co-ownership disputes, contact us at Wollerman Shacklock via admin@wslegal.com.au or give us a call on 9707 1155.