Buying Property With Your Partner? Here's What You Need to Know

Two Ways to Own Property Together

When two or more people buy property together in Victoria, there are two main ways to hold the title:

Joint Tenants

This is the most common choice for couples. With joint tenancy, you both own the whole property together - there are no separate shares. If one owner dies, the property automatically passes to the surviving owner, regardless of what either will says.

This "right of survivorship" is often exactly what couples want. But it's not always appropriate, particularly for blended families or where one party is contributing significantly more to the purchase.

Tenants in Common

With this structure, each owner holds a distinct share of the property - which can be equal (50/50) or unequal (say, 70/30 to reflect different deposit contributions).

Each owner can leave their share to whoever they choose in their will. There's no automatic right of survivorship.

This structure offers more flexibility, but requires more thought about what happens in different scenarios.

What Happens if You're Not Married?

Many couples assume that living together for a certain period gives them automatic property rights. This isn't quite how it works.

De facto couples do have property rights under the Family Law Act, but these only come into play when the relationship ends. They don't automatically determine how the property is owned during the relationship.

If you're buying with a partner and you're not married, the way you structure ownership and any agreements you put in place become especially important.

Should You Get a Cohabitation Agreement?

A cohabitation agreement (sometimes called a property agreement) sets out what happens to the property if you separate. It can cover:

- How the property will be divided

- How the mortgage will be handled

- What happens if one party wants to sell and the other doesn't

- How improvements or renovations are treated

- What happens if one party stops contributing to repayments

These agreements aren't romantic, but they provide clarity when emotions are running high. Think of it as insurance you hope you'll never need.

Unequal Contributions - Getting It Right

If one partner is contributing more to the deposit, or one is paying more of the mortgage, this should be documented clearly.

Without proper documentation, disputes can arise about who is entitled to what. Did that extra deposit money create a larger ownership share, or was it a gift? Was the agreement that one party would pay less mortgage because they were doing renovations?

Memories fade and interpretations differ. Written records don't.

Questions to Discuss Before You Buy

Before signing anything, have an honest conversation about:

- How will the deposit be split, and does this affect ownership percentages?

- How will ongoing costs (mortgage, rates, maintenance) be divided?

- What happens if one person loses their job or can't contribute?

- If you separate, will you sell or will one person buy the other out?

- How will you decide on a sale price or buyout figure?

- What if one person wants to sell and the other doesn't?

These conversations are easier to have now than when you're in the middle of a dispute.

Protect Your Purchase - and Your Relationship

Getting proper legal advice before you buy doesn't mean you're planning for failure. It means you're being responsible adults making a major financial decision.

A quick chat with a solicitor can help you understand your options, choose the right ownership structure, and put appropriate agreements in place.

Thinking about buying property with your partner?

Our property team can guide you through the options and help you get the structure right from the start.

Call us on (03) 9787 4511 or book a consultation.