Co-ownership agreement, 7/22 Carlisle Street

Co-ownership agreement template for shares, costs and exit

A co-ownership agreement is what two people write before they buy together, not after something goes wrong. This one covers a $780,000 unit held 60/40 as tenants in common, with tables for who paid what at settlement, who pays what each month, and how either of them gets out.

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Property co-ownership agreement
Settlement 19 November 2027

7/22 Carlisle Street, Held 60/40

Between Priyanka Raval and Thomas Beaudry, tenants in common

Prepared by
Priyanka Raval and Thomas Beaudry
Date
Settlement 19 November 2027
Co-ownership agreement · 7/22 Carlisle Street, Hawthorn East · 60/40Page 2 of 7
Co-ownership agreement · 7/22 Carlisle Street, Hawthorn East · 60/40Page 3 of 7
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Co-ownership agreement · 7/22 Carlisle Street, Hawthorn East · 60/40Page 5 of 7
Co-ownership agreement · 7/22 Carlisle Street, Hawthorn East · 60/40Page 6 of 7
Co-ownership agreement · 7/22 Carlisle Street, Hawthorn East · 60/40Page 7 of 7
Parties and the property

Made on 2 November 2027 between Priyanka Raval of 14 Doncaster Road, Balwyn VIC 3103 and Thomas Beaudry of 9 Stanley Street, Richmond VIC 3121, who are buying Unit 7, 22 Carlisle Street, Hawthorn East VIC 3123 together and settling on 19 November 2027.

$780,000
Purchase price
60 / 40
Shares held
$624,000
Joint loan
$4,590
Monthly costs
1. How the property is held
1.1
Tenants in common, 60 and 40
The parties hold the property as tenants in common in unequal shares: Priyanka 60 per cent and Thomas 40 per cent. They are not joint tenants, so nothing passes automatically to the survivor and each share is dealt with by that owner’s will.
1.2
What the shares mean
The shares set the split of every cost, every improvement and every dollar of sale proceeds under this agreement, unless a clause says otherwise. They are registered on the title at settlement and are not changed by one party paying more than their share on any occasion.
2. What each party paid to buy it
2.1
Purchase contributions
The cash needed at settlement, apart from the loan, is $204,000 and was contributed in the 60/40 shares. Each figure below is agreed as the amount that party contributed, and no party claims a larger interest because of it.
Item
Total
Priyanka 60%
Thomas 40%
Deposit, 20 per cent
$156,000
$93,600
$62,400
Stamp duty and registration
$43,180
$25,908
$17,272
Conveyancing and searches
$2,600
$1,560
$1,040
Building and pest inspection
$820
$492
$328
Loan establishment
$1,400
$840
$560
Cash at settlement
$204,000
$122,400
$81,600
Item
Total
Priyanka 60%
Thomas 40%
Deposit, 20 per cent
$156,000
$93,600
$62,400
Stamp duty and registration
$43,180
$25,908
$17,272
Conveyancing and searches
$2,600
$1,560
$1,040
Building and pest inspection
$820
$492
$328
Loan establishment
$1,400
$840
$560
Cash at settlement
$204,000
$122,400
$81,600
Item
Total
Priyanka 60%
Thomas 40%
Deposit, 20 per cent
$156,000
$93,600
$62,400
Stamp duty and registration
$43,180
$25,908
$17,272
Conveyancing and searches
$2,600
$1,560
$1,040
Building and pest inspection
$820
$492
$328
Loan establishment
$1,400
$840
$560
Cash at settlement
$204,000
$122,400
$81,600
3. The loan
3.1
Both are liable for all of it
The loan of $624,000 is in both names and the lender may pursue either party for the whole balance, whatever this agreement says. The 60/40 split governs what the parties owe each other, not what the lender may do.
3.2
Repayments
The repayment of $3,820 a month is paid from a joint account funded by both parties by the 25th of the previous month, in the 60/40 shares. Either party may pay more than their share into the loan, and clause 8.2 says how that is treated at sale.
3.3
Refinancing and redraw
Neither party refinances, redraws, increases the loan or grants any further security over the property without the other’s written consent. A request for consent is answered within 10 business days.
4. Ongoing costs
4.1
What is shared, and how
The costs of holding the property are shared 60/40 and paid from the joint account. Usage costs of living in the unit, being electricity, gas, internet and water usage, are paid in full by the party occupying it under clause 5.
Monthly cost
Total
Priyanka 60%
Thomas 40%
Loan repayment
$3,820
$2,292
$1,528
Owners corporation fees
$310
$186
$124
Council rates
$145
$87
$58
Water service charge
$70
$42
$28
Landlord and contents insurance
$45
$27
$18
Maintenance fund
$200
$120
$80
Monthly total
$4,590
$2,754
$1,836
Monthly cost
Total
Priyanka 60%
Thomas 40%
Loan repayment
$3,820
$2,292
$1,528
Owners corporation fees
$310
$186
$124
Council rates
$145
$87
$58
Water service charge
$70
$42
$28
Landlord and contents insurance
$45
$27
$18
Maintenance fund
$200
$120
$80
Monthly total
$4,590
$2,754
$1,836
Monthly cost
Total
Priyanka 60%
Thomas 40%
Loan repayment
$3,820
$2,292
$1,528
Owners corporation fees
$310
$186
$124
Council rates
$145
$87
$58
Water service charge
$70
$42
$28
Landlord and contents insurance
$45
$27
$18
Maintenance fund
$200
$120
$80
Monthly total
$4,590
$2,754
$1,836
4.2
Insurance
The owners corporation insures the building. The parties hold their own policy for contents, landlord risks and public liability, currently $45 a month, and neither party may let that policy lapse. A claim is made in both names and any excess is shared 60/40.
5. Who lives there
5.1
Thomas occupies the unit
Thomas lives in the unit from settlement. Priyanka does not, and her share of the property is an investment. Either party may end this arrangement on three months written notice, after which the unit is let under clause 5.3 or occupied by agreement.
5.2
What the occupier pays the other
Market rent for the unit was assessed at $560 a week on 20 October 2027. Thomas pays Priyanka 60 per cent of that figure, being $336 a week, because she is the one giving up the use of her share. The figure is reviewed every 12 months against a written appraisal from a local agent.
Why the occupancy payment exists
One owner living in a property both own is the single most common cause of a co-ownership falling out. Writing the payment down as a share of assessed market rent, with a yearly review, means neither party has to raise it as a grievance later.
5.3
Guests, sharing and letting
Thomas may have guests and may share the unit with one other person, who signs no agreement with Priyanka and acquires no rights. The unit is not listed on a short stay platform. Letting the unit to a tenant needs both parties to agree in writing, and the rent is then shared 60/40.
6. Repairs, improvements and decisions
6.1
Who can approve what
Spending under $500 may be approved by either party alone. Between $500 and $5,000 both must agree in writing. Above $5,000 both must agree and two written quotes are obtained first. Emergency repairs to make the unit safe or watertight may be done by either party without approval.
6.2
The maintenance fund
Both parties pay $200 a month into a separate account for repairs and the owners corporation special levies. The fund is spent only on the property, the balance is reported to both parties each quarter, and it is divided 60/40 if the property is sold.
6.3
Improvements
An improvement one party pays for alone does not change the shares. It is repaid to that party out of the sale proceeds at the lower of its cost and the value it adds, as assessed by the valuers under clause 7.2, before the proceeds are split.
6.4
Car space, storage and the owners corporation
Car space 7 and storage cage 7 are on the title and go with the property, not with either party. Thomas uses both while he occupies the unit. Either party may attend an owners corporation meeting, and neither votes on a special levy above $2,000 without telling the other first.
6.5
Records and reporting
Statements for the joint account, the loan and the maintenance fund are shared between the parties each quarter, along with the owners corporation notices and the rates and water bills. Either party may ask for a statement at any time and the other provides it within seven days.
7. Selling and exit
7.1
First right of refusal
A party who wants out gives the other written notice. The other has 60 days to buy that share at the price set under clause 7.2, and 30 further days to settle. If the notice is not taken up, the whole property is sold on the open market.
7.2
How the price is set
Each party appoints a licensed valuer within 14 days and the two valuations are averaged. If they differ by more than 10 per cent of the higher figure, the two valuers appoint a third, whose valuation binds both parties. The share price is that value multiplied by the departing share, less that share of the loan.
7.3
Forcing a sale
Neither party may require a sale in the first five years except under clause 8. After 19 November 2032 either party may require the property to be sold on six months written notice, and the other keeps the first right of refusal in clause 7.1.
8. If a party cannot pay
8.1
Covering a shortfall
If a party does not pay their share into the joint account by the due date, the other may pay it to protect them both from default. The paying party tells the other in writing within seven days what was paid and when.
8.2
How that money comes back
Money paid for the other party is a debt repayable on demand, carrying simple interest of 8 per cent a year until repaid. If it is unpaid at sale, it comes out of that party’s share of the proceeds before the split. Repeated shortfalls over six months let the paying party require a sale under clause 7.3.
9. Death, wills and disputes
9.1
If a party dies
A share passes under that party’s will, and each party agrees to keep a current will that deals with it. The surviving party has 90 days from probate to buy the share at the price set under clause 7.2, and the estate must accept that offer or agree to a sale of the whole property.
9.2
Disputes, tax and general
A dispute goes to mediation before any court proceeding, with the cost shared 60/40. Each party accounts to the tax office for their own share of income, deductions and any capital gain. This agreement is the whole arrangement between the parties about the property, may be changed only in writing signed by both, and is governed by the law of Victoria.
9.3
A new partner moving in
If a partner of the occupying party moves into the unit for more than three months, the occupancy payment in clause 5.2 is reviewed and the parties agree a new figure within 30 days. The partner signs an acknowledgement that they acquire no interest in the property and no right to remain if the occupying party leaves.
Each party should take separate advice before signing
The parties hold unequal shares, are jointly liable for one loan and are agreeing in advance how one will buy the other out. Those are three good reasons for each party to have this document read by their own lawyer rather than a shared one.
Priyanka Raval
Name
:
Date
:
Thomas Beaudry
Name
:
Date
:

Section by section

What each section is for, so you can keep the ones you need and drop the rest.

Cover and parties
A document cover naming the property and the 60/40 split, then the parties.
1. How the property is held
Tenants in common in unequal shares, and what the shares govern.
2. What each party paid to buy it
A table splitting $204,000 of settlement costs across five items in 60/40 shares.
3. The loan
Joint liability to the lender, the monthly repayment, and consent before refinancing.
4. Ongoing costs
A monthly table totalling $4,590, what the occupier pays in full, and insurance.
5. Who lives there
Approval thresholds, the maintenance fund, improvements and the car space.
6. Repairs, improvements and decisions
Approval thresholds, the maintenance fund, improvements, car space and reporting.
7. Selling and exit
First right of refusal, the valuation method and the right to force a sale after five years.
8. If a party cannot pay
Covering a shortfall, the interest on it, and when repeated shortfalls force a sale.
9. Death, wills and disputes
What happens to a share on death, a new partner moving in, mediation and tax.

Clauses in this document

How to adapt this agreement

For three or more owners, replace the first right of refusal with a pre emption round that offers the share to the others in proportion, or one owner can block a sale by doing nothing. For a parent helping a child buy, decide whether the contribution is a share, a loan or a gift and say so, because unclear help is the hardest thing to unwind later. For two couples, name four people on the title and add a clause for what happens if one couple separates, since that affects the property whether the other couple likes it or not.

Which law the terms follow

The agreement is governed by the law of Victoria, where the unit sits, and it assumes the shares are registered on the title at settlement. Stamp duty and registration are listed as a settlement cost rather than calculated in the document, because the rate depends on the state and on any concession the buyers qualify for. Each owner accounts to the tax office for their own share of income, deductions and any capital gain.

What makes this document work

Two tables carry the whole financial relationship

The settlement table splits $204,000 into $122,400 and $81,600 across five line items, and the monthly table splits $4,590 into $2,754 and $1,836 across six. Every row is 60/40 of the total, so a reader can check the arithmetic and an owner can see exactly what they committed to.

The occupancy payment is priced before anyone resents it

Thomas lives there and Priyanka does not, so he pays her 60 per cent of the $560 a week market appraisal, being $336, reviewed every 12 months against a written appraisal. A callout says why: one owner living in a jointly owned property is the most common cause of a falling out.

The exit has a method, not just a right

A departing owner gives notice, the other has 60 days to buy at a price set by two valuers averaged, and a third valuer breaks a gap of more than 10 per cent. After five years either owner can require a sale, so neither is locked in by the other.

Questions people ask

What should a property co-ownership agreement cover?

How the title is held and in what shares, who contributed what at settlement, how the loan and running costs are split, who lives there and what they pay for it, who can approve spending, what happens if someone cannot pay, and how a share is valued and sold. Anything left out becomes an argument later.

What does tenants in common mean?

Each owner holds a defined share that does not pass automatically to the other on death. Here the shares are 60 and 40, registered on the title, and each share is dealt with by that owner's will. Joint tenants is the alternative, where the survivor takes the whole property regardless of the will.

Should one owner pay rent if they live in the property alone?

It is the fairest way to handle unequal use. In this agreement market rent was appraised at $560 a week, and the occupier pays the other owner 60 per cent of that, being $336 a week, because she is the one giving up the use of her share. The figure is reviewed annually.

What happens if one owner cannot make a repayment?

The other can pay it to protect them both from default. That money is a debt repayable on demand with simple interest at 8 per cent a year, and if it is still unpaid at sale it comes out of the defaulting owner's share. Repeated shortfalls over six months let the paying owner require a sale.

How is one owner bought out of a jointly owned property?

The departing owner gives written notice and the other has 60 days to buy at the price set under the valuation clause, with 30 more days to settle. Each side appoints a valuer, the two figures are averaged, and if they are more than 10 per cent apart a third valuer decides.

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