Co-Ownership Agreement (Australia)
Joint Property Co-Ownership Agreement (Australia)
CO-OWNERSHIP AGREEMENT
This Co-Ownership Agreement (the “Agreement”) is entered into on [Effective Date] by and between:
[Owner One Name] of [Owner One Address] (“Owner One”); and
[Owner Two Name] of [Owner Two Address] (“Owner Two”).
Owner One and Owner Two are collectively referred to as the “Co-Owners”.
1. THE PROPERTY
1.1 The Co-Owners jointly own the following property (the “Property”):
Address: [Property Address]
Legal Description: [Property Description]
1.2 The Property is held as [Ownership Structure].
2. OWNERSHIP SHARES
2.1 The ownership interests in the Property are as follows:
Owner One ([Owner One Name]): [Owner One Share]%
Owner Two ([Owner Two Name]): [Owner Two Share]%
2.2 The Co-Owners acknowledge that the total purchase price of the Property was AUD $[Purchase Price]. Owner One contributed AUD $[Owner One Contribution] and Owner Two contributed AUD $[Owner Two Contribution] towards the initial costs of acquisition.
2.3 Mortgage and financing arrangements: [Mortgage Details].
3. OUTGOINGS AND EXPENSES
3.1 All ongoing property expenses (including mortgage repayments, council rates, water rates, insurance premiums, body corporate levies, and maintenance costs) shall be borne [Outgoings Split].
3.2 Where one Co-Owner pays more than their agreed share of outgoings, the overpaying Co-Owner may seek contribution from the other Co-Owner within 14 days of written demand.
4. MANAGEMENT AND DECISIONS
4.1 Day-to-day management decisions regarding the Property shall be made jointly by the Co-Owners.
4.2 Major decisions (including but not limited to sale of the Property, significant capital improvements, refinancing, and granting of leases) require the written consent of all Co-Owners.
4.3 If the Co-Owners cannot agree on a major decision, either Co-Owner may refer the dispute to mediation in accordance with clause 7 of this Agreement.
5. SALE OF PROPERTY
5.1 The Property may be sold if all Co-Owners agree in writing. Sale proceeds shall be distributed to the Co-Owners in proportion to their respective ownership shares after deduction of all selling costs, agent’s commission, and discharge of any mortgage.
5.2 Either Co-Owner may apply to the relevant Supreme Court for a forced sale (partition) of the Property under applicable state property legislation if the Co-Owners cannot agree on a sale.
6. DISPUTE RESOLUTION
6.1 If a dispute arises between the Co-Owners in connection with this Agreement, the parties must first attempt to resolve the dispute by direct negotiation in good faith.
6.2 If the dispute is not resolved within 21 days of written notice, either Co-Owner may refer the dispute to mediation through a registered mediator. The costs of mediation shall be shared equally.
7. GOVERNING LAW
7.1 This Agreement is governed by the laws of [Governing State], Australia. Each party submits to the non-exclusive jurisdiction of the courts of [Governing State].
8. GENERAL
8.1 This Agreement constitutes the entire agreement between the Co-Owners in relation to the co-ownership of the Property and supersedes all prior agreements and understandings.
8.2 Any amendment to this Agreement must be in writing and signed by both Co-Owners.
8.3 This Agreement binds the parties and their respective legal personal representatives and assigns.
SIGNED as an Agreement
Owner One
________________
Signature
Date: ________________
Owner Two
________________
Signature
Date: ________________
What Is a Co-Ownership Agreement (Australia)?
A Co-Ownership Agreement Australia is a legal contract between two or more people who jointly own property — real estate, a vehicle, a boat, a business asset, or other valuable property — setting out their respective ownership shares, financial contributions, responsibilities, and exit rights. Co-ownership of real property is extremely common in Australia, particularly between couples purchasing their first home, friends buying investment properties together, family members inheriting property jointly, or business partners acquiring commercial premises.
Australian property law recognises two forms of co-ownership of real property. In a joint tenancy, all co-owners hold the property equally with the right of survivorship — if one owner dies, their interest automatically passes to the surviving co-owners and cannot be dealt with by Will. In a tenancy in common, each owner holds a defined fractional share that may be unequal and can be transferred, mortgaged, or left by Will independently of the other owners' shares. Most co-ownership agreements between unrelated parties are structured as tenancies in common to allow for unequal contributions and testamentary freedom. The form of ownership is recorded on the title at the relevant state land registry: the Land Registry Services (NSW), Land Use Victoria, the Queensland Land Registry, Landgate (WA), or equivalent authorities in other states.
Without a written Co-Ownership Agreement, disputes about contributions, outgoings, and exit rights are resolved by the general law of property — which provides limited and often unsatisfactory outcomes. Any co-owner may apply to the Supreme Court of the relevant state for a court-ordered partition or sale of co-owned property under property law legislation including the Conveyancing Act 1919 (NSW) s 66G, the Property Law Act 1958 (Vic) s 222, or the Property Law Act 1974 (Qld) s 38. Courts generally favour ordering a sale over a physical partition unless the circumstances strongly favour division. A Co-Ownership Agreement that provides for agreed buyout rights and exit procedures significantly reduces the risk of costly and acrimonious court proceedings.
For investment properties, co-owners should also address the Australian Taxation Office's (ATO) rules on joint ownership of rental properties. Rental income and deductions must generally be split between co-owners in proportion to their legal ownership interests under Tax Ruling TR 93/32. The ATO also requires that each co-owner report their share of rental income and capital gains on their individual tax returns. Foreign co-purchasers must obtain Foreign Investment Review Board (FIRB) approval under the Foreign Acquisitions and Takeovers Act 1975 (Cth) before acquiring an interest in Australian residential land.
Stamp duty — called transfer duty in most Australian states — is payable on the dutiable value of each co-owner's share at the applicable rate under the Duties Act 1997 (NSW), the Duties Act 2000 (Vic), the Duties Act 2001 (Qld), or equivalent state legislation. First home buyer concessions and exemptions under state Revenue Office rules may reduce the duty payable where eligible co-owners are acquiring their first property. The Office of State Revenue in each jurisdiction administers these concessions, and co-owners should confirm eligibility before settlement. Forms-legal.com provides this template as a starting point for Australian co-ownership documentation.
When Do You Need a Co-Ownership Agreement (Australia)?
A Co-Ownership Agreement should be prepared and signed before or at the time of acquiring jointly owned property in Australia. Australian courts interpret property rights based on the legal title and any written agreements between the parties — oral arrangements and informal understandings are unreliable and frequently disputed.
Unequal financial contributions: Where co-owners contribute different amounts to the purchase price, deposit, or mortgage repayments, the agreement must clearly document each party's contribution and whether ownership shares will reflect those contributions or be equal regardless. Without written documentation, the ATO's default position is that rental income and capital gains are split equally between owners, which may not reflect the parties' actual financial arrangements.
Mortgage responsibility: Where only one co-owner services the mortgage, or co-owners contribute different amounts to mortgage repayments, the agreement must specify how these contributions are recorded, whether they create an equity adjustment over time, and what happens if one party cannot meet their share of repayments. Australian banks routinely require all co-owners to be jointly and severally liable on the mortgage, meaning each co-owner is responsible for the full debt if the other defaults.
Investment property ownership: Co-owners of Australian investment properties need written documentation to support their tax positions with the ATO, particularly where ownership shares differ from equal. The agreement should specify the ownership percentage of each co-owner, how rental income is to be distributed, and how capital improvement costs are to be shared and recorded for capital gains tax purposes under the Income Tax Assessment Act 1997 (Cth).
Exit planning: When co-owners wish to part ways, the absence of a written agreement can lead to forced sale applications before the Supreme Court of the relevant state under partition and sale legislation. A Co-Ownership Agreement with buyout rights and exit procedures — including an agreed valuation mechanism (such as two independent valuations averaged) and a first right of refusal for the remaining co-owner — avoids court proceedings and provides a commercially sensible exit pathway.
Relationship breakdown: For unmarried co-owners, including de facto couples and friends, there is no automatic legal framework for dividing co-owned property on relationship breakdown (unlike the Family Law Act 1975 (Cth) which applies to married and de facto couples). A Co-Ownership Agreement provides the contractual framework that would otherwise be absent.
What to Include in Your Co-Ownership Agreement (Australia)
An Australian Co-Ownership Agreement should address the following core elements to protect all parties and provide a clear framework for managing the co-owned property.
Parties and property description: The full legal names of all co-owners and a precise description of the property — including the Certificate of Title reference, Lot and Deposited Plan number (or equivalent in each state), and street address for real property, or a precise description for personal property.
Ownership structure: Whether the property is held as joint tenants or tenants in common, and if tenants in common, the percentage share of each co-owner. For real property, the ownership structure must match the title registration at the state land registry (Land Registry Services in NSW, Land Use Victoria, Queensland Land Registry, Landgate in WA, or equivalent). Converting from joint tenancy to tenancy in common requires severing the joint tenancy by registered notice at the relevant land registry under the Conveyancing Act 1919 (NSW) s 97 or equivalent state provision.
Financial contributions: Each co-owner's contribution to the purchase price, deposit, stamp duty (transfer duty under the Duties Act 1997 (NSW) or equivalent), legal costs, and any renovation or improvement costs at the time of acquisition. Contributions should be documented to support the co-owners' tax positions with the ATO under Tax Ruling TR 93/32.
Mortgage and ongoing costs: How mortgage repayments, council rates, water charges, strata levies (under the Strata Schemes Management Act 2015 (NSW), Owners Corporations Act 2006 (Vic), or equivalent state legislation), insurance premiums, and routine maintenance costs are to be shared. The agreement should specify the mechanism for adjusting equity if one party consistently pays more than their proportionate share.
Decision-making: How decisions about the property — including refinancing, major repairs, renovations, leasing to tenants, and capital improvements — are to be made. For investment properties, whether a licensed real estate agent or property manager is to be engaged under the Property and Stock Agents Act 2002 (NSW) or equivalent, and on what terms.
Right of first refusal: An obligation for any co-owner wishing to sell their share to first offer it to the other co-owners at an agreed price or at a price determined by a registered independent valuer before offering it to third parties. The offer period should be clearly defined — typically 30 to 60 days.
Buyout and exit procedures: A mechanism for a co-owner to trigger a buyout or forced sale, including the valuation methodology (a registered valuer under the Valuers Act 2003 (NSW) or equivalent, or average of two independent valuations), the time periods for each step, and the consequences of the non-selling co-owner failing to exercise their right to buy within the period.
Capital gains tax: How capital gains on any future sale of the property are to be allocated between co-owners for Australian income tax purposes under the Income Tax Assessment Act 1997 (Cth) Division 104, and how the 50% CGT discount under s 115-100 applies to each co-owner who has held their interest for more than 12 months.
Dispute resolution: Negotiation, mediation before a mediator accredited under the National Mediator Accreditation System (NMAS), and as a last resort application to the Supreme Court of the relevant state for partition or sale. The agreement should specify the governing state law. Forms-legal.com provides this template as a starting point for Australian co-ownership documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Co-Ownership Agreement (Australia) (Australia) [Legal document template]. Forms Legal. https://forms-legal.com/australia/real-estate/property/co-ownership-agreement-australia
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author = {{Forms Legal}},
title = {Co-Ownership Agreement (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/real-estate/property/co-ownership-agreement-australia}},
note = {Free legal document template. Based on Real Property Act 1900 (NSW)}
}Frequently Asked Questions
In a joint tenancy, all co-owners hold the property equally with rights of survivorship — if one owner dies, their share automatically passes to the surviving owners, not their estate. In a tenancy in common, each owner holds a defined share (which can be unequal) that can be dealt with independently, including being left by Will. Most co-ownership agreements are structured as tenancies in common to allow for unequal contributions and testamentary freedom. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Yes. Any co-owner in Australia can apply to the Supreme Court for a forced sale (partition) of co-owned property under state property legislation (e.g., the Conveyancing Act 1919 (NSW), Property Law Act 1958 (Vic)). Courts will generally order a sale unless there are compelling reasons not to. A well-drafted co-ownership agreement can reduce the risk of this by setting out agreed buyout rights, exit procedures, and dispute resolution mechanisms. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Each co-owner is assessed for stamp duty (transfer duty) on their share of the property at the time of acquisition. For land tax, co-owners in most Australian states are each assessed on their proportionate share of the unimproved or improved land value. The principal place of residence exemption from land tax applies separately to each co-owner based on their individual circumstances. Under Australia law, Real Property Act 1900 (NSW), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
A Co-Ownership Agreement (Australia) does not legally require a lawyer in Australia, and individuals and businesses may draft and execute the document independently. The Real Property Act 1900 (NSW) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Australia lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Federal Court of Australia has jurisdiction over disputes arising from this type of document, and Australian Securities and Investments Commission (ASIC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Co-Ownership Agreement (Australia) does not legally require a lawyer in Australia, though legal advice is recommended for complex transactions. Under Australian law, individuals may draft and execute this type of document independently. The Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010) provides consumer protections. However, the Australian Securities and Investments Commission (ASIC), Fair Work Commission (FWC), or state regulatory bodies may have specific requirements. For property transactions, state land registries and the Real Property Act require qualified conveyancers or solicitors. The Privacy Act 1988 (Cth) and Australian Privacy Principles impose obligations on parties handling personal data, and legal review confirms compliance. Where disputes arise, the Federal Court of Australia, state Supreme Courts, or relevant tribunals (NCAT, VCAT, QCAT) have jurisdiction. Forms-legal.com provides this template as a starting point — always review with a qualified Australian solicitor for significant transactions.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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