How you own it: joint tenants, trusts, companies and co-owning

What it is

Two or more people can own a property as joint tenants, where the survivor automatically takes the whole property, or as tenants in common in fixed shares, where each share passes under that person's will. Property can also be owned by a family trust, by a company, or by a group of unrelated buyers under a property sharing agreement.

Why it matters

Unequal contributions, blended families, parents helping one child, and friends buying together all raise the same question: what happens when circumstances change. The default rules are rarely what people would have chosen. A property sharing agreement, or the right choice between joint tenancy and tenancy in common, settles it while everyone is still friends.

How we handle it

We ask who is contributing what, and what each person expects if someone wants out. We then recommend the ownership structure and prepare the documents, including any nomination if the buyer on the agreement is not the final owner. For trusts and companies we prepare the resolutions the bank will want to see before it lends.

Common traps

• Defaulting to joint tenants with unequal deposits.
• Buying in one partner's name only, then needing to add the other later to borrow more.
• Using a look-through company without checking the KiwiSaver and bright-line consequences.
• Dying without a will. The property does not necessarily go where you assumed.