A property can look perfect while its legal position is still unclear. In New Zealand, the title is the starting point for checking what you are buying, who can use the land, and what obligations may continue after settlement. This guide explains co-buying a home with another person in practical terms so you can ask better questions before committing money.
Quick Answer
Order a current Record of Title and read it with the relevant plan and instruments. Confirm the registered owners, estate or tenure, legal description, mortgages, easements, covenants, notices and any restrictions. A title search is evidence about registered interests; it does not replace a building inspection, council property file review or legal advice.
Shared ownership starts with the registered title
Friends, siblings, partners and investors may buy together to share a deposit, borrowing capacity or living costs. The arrangement becomes much safer when the legal ownership structure matches the commercial agreement. Start by confirming who is registered, how the owners hold the property and whether the title contains interests that affect use or sale.
Joint tenancy and tenants in common
Joint tenancy generally treats co-owners as holding together, with survivorship consequences when one owner dies. Tenants in common records separate shares, which may be equal or unequal and can usually be dealt with through an estate. The right choice depends on the people, contributions, estate plans and exit expectations involved.
Do not infer the ownership structure from a verbal promise or mortgage contribution. Ask your conveyancer to explain the registered position and make sure the sale and purchase agreement, transfer documents, wills and co-ownership agreement do not conflict.
Title checks before co-buying
- Names: confirm every intended owner is correctly identified and that the legal names match identity and lending documents.
- Shares and structure: establish whether ownership is joint or in common, and record intended proportions where applicable.
- Existing interests: review mortgages, caveats, easements, covenants, leases and notices. These can limit a co-owner’s practical plans.
- Access and shared areas: understand driveways, parking, storage, services and exclusive-use areas. A friendly arrangement is not the same as a registered right.
- Future transfer: ask how a sale, refinance, separation, death or disagreement would be handled and whether consent from all owners is required.
- Insurance and costs: align ownership with rates, repairs, body corporate levies, insurance excesses and mortgage obligations.
The co-ownership agreement is not a substitute for title due diligence
A private agreement can allocate costs and set decision rules, but it cannot rewrite the registered title by itself. It should address contributions, occupation, maintenance, improvements, missed payments, dispute resolution, valuation and exit. Your lawyer should ensure the agreement works with the ownership structure and lending documents.
Also check whether the property is a unit title, cross-lease or leasehold. Those forms can introduce body corporate rules, flats-plan issues, ground rent or shared obligations that a simple co-ownership template will miss.
Choosing the right documents
Order a Record of Title with Diagram for $42.90 to verify the registered estate and physical layout. If the transaction is close to settlement or the lender requires confirmation, a Guaranteed Search costs $45.90. If ownership history matters—for example, an estate or long-running family arrangement—consider a Historical Title for $42.90.
For context, see our guide to title searches in a sale and purchase agreement and our article on tenants in common.
Common mistakes
- Assuming equal contributions automatically mean equal legal shares.
- Adding someone to the mortgage but not properly documenting ownership.
- Failing to plan for a co-owner’s death, separation or financial distress.
- Ignoring easements or unit-title rules because everyone already knows the property.
Key Takeaways
- Confirm the registered owners and ownership structure before signing.
- Review the title, diagram and referenced instruments together.
- Use legal advice to align the co-ownership agreement with the title.
- Plan the exit before the relationship is under pressure.
A practical agreement checklist
Before signing, make a simple schedule of each co-owner’s deposit, mortgage contribution, expected occupation and share of running costs. Then test the arrangement against realistic events: one person wants to sell, one loses income, one wants to renovate, or the relationship ends. The title search should sit beside this schedule so the agreement reflects the actual estate, access rights and restrictions.
Ask how decisions will be made and recorded. Routine repairs, major improvements, refinancing and letting the property may need different approval thresholds. Decide how an exit valuation will be obtained, how a departing owner is paid, and what happens if no one can refinance. Include a process for mediation before litigation, while recognising that urgent legal protection may be needed if a registered interest or payment default creates risk.
Keep the evidence current. Ownership arrangements, mortgages and registered interests can change, so obtain an updated search when the transaction is delayed or materially changes. A clear paper trail protects relationships because everyone can see the agreed structure rather than relying on memory. Get independent legal advice where co-buyers have unequal contributions or different financial exposure.
A practical agreement checklist
Before signing, make a simple schedule of each co-owner’s deposit, mortgage contribution, expected occupation and share of running costs. Then test the arrangement against realistic events: one person wants to sell, one loses income, one wants to renovate, or the relationship ends. The title search should sit beside this schedule so the agreement reflects the actual estate, access rights and restrictions.
Ask how decisions will be made and recorded. Routine repairs, major improvements, refinancing and letting the property may need different approval thresholds. Decide how an exit valuation will be obtained, how a departing owner is paid, and what happens if no one can refinance. Include a process for mediation before litigation, while recognising that urgent legal protection may be needed if a registered interest or payment default creates risk.
Keep the evidence current. Ownership arrangements, mortgages and registered interests can change, so obtain an updated search when the transaction is delayed or materially changes. A clear paper trail protects relationships because everyone can see the agreed structure rather than relying on memory. Get independent legal advice where co-buyers have unequal contributions or different financial exposure.
FAQ
Can two people own a property in unequal shares?
Tenants in common can generally reflect separate shares, subject to the transaction documents and legal advice. Record the intended arrangement clearly.
Does a title show who paid the deposit?
No. The title records registered ownership and interests, not every financial contribution. Keep a written co-ownership agreement.
Should co-buyers order a historical title?
Only when ownership history or prior dealings are relevant. A current title is the normal starting point; a Historical Title costs $42.90 if deeper history is needed.
Buying with another person? Order the title documents first, then have a conveyancer review the structure before you commit.
