An unequal deposit needs more than a handshake
One buyer might bring savings from a previous home while the other contributes more to repayments. Or a parent may help with the deposit. None of that should be left to assumptions about what is fair later. Write down the contributions and tell your solicitor and lender how the purchase is being funded.
If family money is involved, clarify whether it is a gift, a loan or money intended to buy an ownership share. Those are different arrangements. A written agreement may be appropriate, and the people contributing money may need independent advice. An agreement also needs to work with the lender's requirements; it is not a way to keep an arrangement hidden from the bank.
The title and the mortgage answer different questions
The title records legal ownership. The loan documents set out obligations to the lender. A private arrangement to split repayments does not, by itself, change what the bank can require under those documents. Ask your lender to explain each borrower's liability rather than assuming you are responsible only for your agreed share.
Joint tenancy and tenancy in common also have different consequences, particularly on death. Broadly, a joint tenant's interest passes to the surviving joint tenant or tenants, while a tenant in common's share forms part of their estate. We explain the comparison in our existing joint-ownership guide. The decision here is which structure fits your contributions and family plans, not which label sounds simpler.
Agree on the awkward situations while things are going well
A shared purchase should have a plan for change, not just settlement day. Discuss these questions before committing:
- Who pays rates, insurance, maintenance and unexpected repairs?
- What happens if one buyer cannot keep up with repayments?
- If one person wants to sell and the other does not, how will you decide what happens?
- How would a buyout be valued and funded?
- What should happen if a buyer dies or loses decision-making capacity?
Do not assume you can cheaply change it later
Adding an owner or changing shares after settlement can involve lender consent, transfer documents, tax considerations and transfer duty. Whether duty or a concession applies depends on the transaction and eligibility. Get advice before treating a later transfer as an easy fix.
Buying a home is also a good time to review your will and enduring power of attorney. Your estate plans need to reflect how the property is actually held. A will should not be drafted on the assumption that every jointly owned asset becomes part of the estate.
What to bring to a pre-signing discussion
Bring the proposed contract, the buyers' full names, a summary of the deposit and repayment contributions, and details of any family funding. Mention an existing will, children from earlier relationships or a planned buyout arrangement if relevant. Each person should have the opportunity to get independent advice where their interests differ.
Coastside Law can discuss the conveyancing and estate-planning questions together, so the ownership choice is considered before documents are signed. Share personal or financial documents only through a channel agreed with your solicitor, not through a public comment or social-media thread.
Sources and local information
General information about Queensland law, not legal advice for your situation.