If you are considering purchasing a property together with friends or family members, or investing in an existing family home, it is really important to get legal advice early in the process.
What is termed “multigenerational living” is becoming an increasingly popular choice for families in New Zealand, principally due to the increasing costs of housing and the ageing of New Zealand’s population. Multigenerational living can be a very practical way for generations of the same family to live together in close proximity. But, what can start as a friendly informal agreement between family members at the outset can unexpectedly end in a dispute later if relationships break down or if a family member dies or needs residential care.
Most of the issues we see at Gallie Miles could have been avoided if the parties had entered into a Property Sharing Agreement at the outset.
A Property Sharing Agreement covers:
How each parties’ contributions to the purchase of the property will be protected;
How any increase in value of the property is to be divided;
Who pays the mortgage;
Who lives in the property;
Who pays for maintenance and improvements of the property;
What happens if one party wishes to sell and the other does not;
What happens when one owner dies;
How disputes are going to be resolved.
Although Property Sharing Agreements are an additional cost when purchasing the property, they are invaluable for protecting everyone’s interests and avoiding what can be significant legal costs if a dispute arises at some point in the future.
This article is written by Renee Dunn - firstname.lastname@example.org or phone 07 872 0560