Is % ownership of property defined in contract

[jasperjue]

Hi
In the case of 2 parties purchasing a property together with each party taking out separate loans (not joint loans) for 1/2 of the property each, is the % owned by each party defined in the contract of sale or elsewhere ?.

ie does it say anywhere on any doco that is routinely used in a property transaction that Person A owns 50% and Person B owns 50% or any other % combination. ?

 

[Rolf Latham]

Hiya Jasper


The contract would normally say joint tennants ( which is an automatic 50/50, with the balance of the asset going to the other party immediately, and so used for "spousal relationships" vs

"Tennants in common" ........This is where you can specificy the proportions, say 99/1or 50/50. With this type ownership, of one person passess away, that persons portion passes to their estate.

Be mindful that while you can get "separate" loans you will still be jointly and severally liable for the loans, and pulling equity in the future, and any other dealings of the property must be approved by all share holders in the property.

ta
rolf

 

[jasperjue]

thanks for the reply Rolf it was helpful