• The Kaplan Team

THOUGHT OF THE WEEK Co-owning a property and the bond

Updated: Apr 7, 2020

Whether for financial or other reasons, people often invest in property as co-owners, whereby each owns an undivided share in the property. Many such buyers take the sound precaution to draw up a co-ownership agreement.


Buyers in this situation should not forget that no matter what they agree to with regards to split in shares in the property, maintenance, occupation or income from the property, their agreement will not bind third parties such as banks or municipalities.


For example, the bank that grants the home loan will generally insist that both (or all co-owners) agree to be ‘jointly and severally’ liable to repay that loan. This allows the bank to recover the debt from all of the debtors in proportion to their shares or, if necessary, to recover the whole amount from any one of them. So, if one co-owner should fall on hard times or stop paying for any reason, the others will be required to make up the difference.


For assistance or advice in such transactions, contact your KAPLAN BLUMBERG conveyancer before putting pen to paper.


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This article is not intended to constitute legal advice and is produced for information purposes only and to provide a general understanding of the legal position relating to the topic. It is recommended that advice relating to the specific circumstances of your situation be sought from our attorneys before acting upon the content of this article. This article was written at a particular point in time and accordingly may not always reflect the most recent legal developments, if any, applicable to the relevant topic. Kaplan Blumberg and its partners and/or employees, are not responsible for any consequences which may follow upon any decision taken to act upon the information provided in this article.