Why you need them?
It’s a Kiwi dream to own your own home. But with ever increasing property prices reality dictates that we pool our resources with family, friends or business partners to get on the property ladder.
If you’re in this situation we recommend you complete a property sharing agreement (PSA). These agreements set out how you get into the property, how you go on, and how you get out of a property sharing arrangement.
A PSA is a great way to maintain relationships between owners and avoid unnecessary costs (in time and money) from potential disputes.
A PSA can be flexible and drafted to suit the particular circumstances of the parties. Common types of PSA’s include:
-A group of friends pool their money together to purchase their first home to live in together;
-Two or more families who wish to purchase a holiday home;
-Property inherited by siblings from their parents estates;
-Parents who help their child to fund the purchase of their first home and the bank requires the parents to take an ownership interest in the property;
-Families with adult children buying a property for all of them to live in;
-Adult children buying into their parents property.
We always recommend that each party should obtain independent legal advice before signing a PSA but there is no statutory obligation in that regard.
PSA’s are an additional cost at the time of purchase (which can be off-putting) but such an agreement can be extremely valuable, in the future, if a dispute arises (almost like an insurance policy). We recommend you take advice from us about your arrangements – your property is a significant asset and its important to protect your investment.