Property Co-Ownership Agreement (New Zealand)
This Property Co-Ownership Agreement (the "Agreement") is made on [Agreement Date] in [Region], New Zealand, under the Property Law Act 2007 (PLA 2007) and the Land Transfer Act 2017.
1. PARTIES
1.1 First Co-Owner: [Owner 1 Name], of [Owner 1 Address], email [Owner 1 Email], holding a [Owner 1 Share]% ownership interest in the Property ("Owner 1").
1.2 Second Co-Owner: [Owner 2 Name], of [Owner 2 Address], email [Owner 2 Email], holding a [Owner 2 Share]% ownership interest in the Property ("Owner 2").
Each party is referred to individually as a "Co-Owner" and collectively as the "Co-Owners".
2. PROPERTY
2.1 Property Address: [Property Address] (the "Property").
2.2 Legal Description: [Legal Description], as recorded on the Certificate of Title registered with Land Information New Zealand (LINZ).
2.3 Type of Co-Ownership: The Co-Owners hold the Property as [Ownership Type]. Under section 80 of the Property Law Act 2007, co-owners as tenants in common hold undivided shares in the Property and may deal with their respective shares independently. Under a joint tenancy, the right of survivorship (jus accrescendi) applies — on the death of a Co-Owner, their interest passes automatically to the surviving Co-Owner(s) regardless of any testamentary disposition.
3. FINANCIAL CONTRIBUTIONS AND PURCHASE PRICE
3.1 Total Purchase Price: NZD $[Purchase Price].
3.2 Owner 1's Initial Contribution: NZD $[Owner 1 Contribution], representing [Owner 1 Share]% of the purchase cost.
3.3 Owner 2's Initial Contribution: NZD $[Owner 2 Contribution], representing [Owner 2 Share]% of the purchase cost.
3.4 Conveyancing costs, Land Transfer Tax (if applicable under the Overseas Investment Act 2018 or other legislation), LINZ registration fees, and any other acquisition costs shall be borne by the Co-Owners proportionally to their respective ownership shares unless otherwise agreed in writing.
4. OCCUPATION AND USE
4.1 Occupation Arrangement: [Occupation Arrangement].
4.2 Details: [Occupation Details].
4.3 Each Co-Owner must use and occupy any part of the Property occupied by them in a lawful and responsible manner and must not cause damage to the Property or nuisance to the other Co-Owners or neighbours.
4.4 No Co-Owner may sublet or license their part of the Property or any portion of the Property to a third party without the prior written consent of all other Co-Owners.
5. ONGOING COSTS AND EXPENSES
5.1 Cost Sharing Basis: [Cost Split].
5.2 Cost Sharing Details: [Cost Details].
5.3 All ongoing costs and expenses of the Property, including council rates, building and contents insurance, maintenance, repairs, body corporate levies (if applicable), and utilities, shall be shared between the Co-Owners in accordance with the arrangement described in clauses 6.1 and 6.2.
5.4 The Co-Owners must maintain the Property in good repair and condition at all times. Any maintenance or repair expenditure above NZD $1,000 must be agreed in writing by all Co-Owners before the work is carried out, except in the case of emergency repairs required to prevent damage to the Property.
5.5 The Property must be insured for its full replacement value at all times by a building insurer licensed in New Zealand. All Co-Owners must be recorded as interested parties on the insurance policy.
6. DECISION MAKING AND MANAGEMENT
6.1 Decision-Making Process: [Decision Making].
6.2 Managing Co-Owner: [Managing Owner].
6.3 Major decisions require the written agreement of all Co-Owners. Major decisions include: sale of the Property or any Co-Owner's share; creation of any mortgage, charge, or encumbrance; significant renovations or structural alterations; change of use of the Property; and entry into any lease, licence, or other agreement affecting the Property.
6.4 Routine maintenance, property management decisions, and emergency repairs may be authorised by the managing Co-Owner (if appointed) or by any Co-Owner in cases of genuine urgency.
7. RIGHT OF FIRST REFUSAL ON TRANSFER
7.1 Before any Co-Owner (the "Selling Owner") transfers, assigns, or disposes of their ownership interest in the Property to any person other than another Co-Owner, the Selling Owner must first offer their interest to the remaining Co-Owner(s) at the same price and on the same terms as the proposed transfer (the "Pre-Emption Notice").
7.2 The remaining Co-Owner(s) have [Pre-Emption Period] days from receipt of the Pre-Emption Notice to elect to purchase the Selling Owner's interest at the offered price and terms. If more than one Co-Owner wishes to purchase, they may do so in proportion to their existing shares or as otherwise agreed.
7.3 If the remaining Co-Owner(s) do not exercise their right of first refusal within the [Pre-Emption Period]-day period, the Selling Owner may proceed to transfer their interest to the proposed buyer at no less than the price stated in the Pre-Emption Notice.
7.4 Any transfer of a Co-Owner's interest must be registered with LINZ in accordance with the Land Transfer Act 2017. A new co-owner admitted in place of an existing Co-Owner must sign a deed of covenant agreeing to be bound by the terms of this Agreement.
8. DISPUTE RESOLUTION
8.1 The parties must attempt to resolve any dispute arising under this Agreement by direct negotiation in the first instance, giving at least 10 days' written notice of the dispute to the other Co-Owner(s) before commencing formal proceedings.
8.2 Dispute Resolution Process: [Dispute Process].
8.3 If the dispute cannot be resolved through the agreed process, either Co-Owner may apply to the District Court or High Court of New Zealand for an order under section 339 of the Property Law Act 2007 for partition or sale of the Property. The court may order that the Property be partitioned (divided between the Co-Owners) or sold and the proceeds distributed according to each Co-Owner's ownership share.
8.4 This Agreement is governed by the laws of New Zealand, including the Property Law Act 2007 and the Land Transfer Act 2017.
9. GENERAL PROVISIONS
9.1 This Agreement constitutes the entire agreement between the Co-Owners with respect to the co-ownership of the Property and supersedes all prior negotiations, representations, and arrangements.
9.2 Any variation to this Agreement must be in writing and signed by all Co-Owners.
9.3 This Agreement binds the Co-Owners and their respective heirs, executors, administrators, successors, and permitted assigns.
9.4 Notices under this Agreement must be given in writing to the addresses or email addresses specified in clause 1. Notice is effective on delivery or, if by email, on transmission provided no error message is received.
9.5 If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions continue in full force and effect.
9.6 The Co-Owners should seek independent legal advice before signing this Agreement. This document does not constitute legal advice and does not create a solicitor-client relationship.
EXECUTION
This Agreement has been read and understood by all Co-Owners. Each Co-Owner signs this Agreement as a binding commitment to its terms.
FIRST CO-OWNER
Name: [Owner 1 Name]
Address: [Owner 1 Address]
SECOND CO-OWNER
Name: [Owner 2 Name]
Address: [Owner 2 Address]
First Co-Owner
________________
Signature
Second Co-Owner
________________
Signature
What Is a Property Co-Ownership Agreement (New Zealand)?
A Property Co-Ownership Agreement in New Zealand records the sale of real property from vendor to purchaser, including the price, deposit, settlement date, and conditions of sale governed by the Property Law Act 2007.
In New Zealand, co-ownership of real property is governed primarily by the Property Law Act 2007 (PLA 2007) and the Land Transfer Act 2017, administered by Land Information New Zealand (LINZ). Under the PLA 2007, co-owners can hold property in two ways: as tenants in common, where each co-owner holds a distinct, transferable share (for example, 50% each), or as joint tenants, where co-owners hold the property together without defined shares and the right of survivorship applies on death. The choice between these two forms of co-ownership has significant legal and practical consequences, particularly in relation to estate planning, mortgage arrangements, and the ability to transfer or deal with one's share independently.
Section 339 of the Property Law Act 2007 gives any co-owner the right to apply to the District Court or High Court for an order for partition or sale of the co-owned property, regardless of the other co-owners' wishes. This right cannot be excluded by contract — a co-ownership agreement cannot prevent a co-owner from going to court — but a well-drafted agreement can provide agreed processes for resolving disputes and managing exits before litigation becomes necessary.
A Property Co-Ownership Agreement should address all key aspects of the co-ownership arrangement: the names and ownership shares of all co-owners; the legal description of the property as recorded on the Certificate of Title with LINZ; the initial financial contributions and mortgage arrangements; how ongoing costs (council rates, building insurance, maintenance, body corporate levies) will be shared; the occupation and use arrangements, including whether co-owners will live in the property, rent it out, or use it as a holiday or investment property; how major and routine decisions will be made; the right of first refusal if one co-owner wishes to sell their share; and the dispute resolution process.
The agreement is particularly important where co-owners contribute unequal amounts to the purchase price or mortgage, occupy different parts of the property, or have different long-term plans for the property. It also needs to address the potential application of the Property (Relationships) Act 1976, which may affect co-owners who are in or enter into de facto relationships, marriages, or civil unions of three or more years' duration.
When Do You Need a Property Co-Ownership Agreement (New Zealand)?
A Property Co-Ownership Agreement is needed whenever two or more people purchase or own a property together in New Zealand, regardless of their relationship to each other or the purpose for which the property is acquired. This includes friends or colleagues purchasing a home or investment property together to share costs and enter the property market; family members (parents and children, siblings, or other relatives) pooling resources to buy a home or holiday property; de facto partners, spouses, or civil union partners who own property and wish to document their respective shares and obligations clearly; and business partners or investors acquiring commercial, residential, or mixed-use property as a joint investment.
The agreement is especially important where the co-owners contribute unequal amounts to the purchase price, where one co-owner will occupy the property and the other will not, where the co-owners have different exit plans or timelines, or where the property is subject to a mortgage with a bank or other lender. Lenders will typically require that all co-owners are jointly and severally liable for the mortgage, which means each co-owner is fully liable for the entire mortgage amount if the other defaults. The co-ownership agreement can address how this liability is managed between the co-owners internally.
A co-ownership agreement should be prepared and signed before or at the time of settling on the purchase of the property. Once disputes arise — which is common even among friends and family members — it becomes much more difficult to agree on the terms, and the cost of resolving the dispute through mediation or court proceedings can be significant. The Tenancy Tribunal does not have jurisdiction over co-ownership disputes involving real property; these matters must be dealt with through mediation or through the District Court or High Court under section 339 of the Property Law Act 2007.
New Zealand's buoyant property market means that the stakes in co-ownership disputes are often very high. A property purchased for $700,000 and subject to co-ownership without a clear agreement can rapidly become the subject of litigation costing tens of thousands of dollars in legal fees. A co-ownership agreement costs a fraction of the price of litigation and provides clear rules that most disputes never have to be escalated to court.
All co-owners should obtain independent legal advice before signing a co-ownership agreement, particularly in relation to the choice between tenants in common and joint tenancy, the potential impact of the Property (Relationships) Act 1976, estate planning implications, and mortgage liability. A New Zealand solicitor can also advise on whether any interests under the agreement should be protected by a caveat or consent notation on the Certificate of Title with LINZ.
What to Include in Your Property Co-Ownership Agreement (New Zealand)
A thorough New Zealand Property Co-Ownership Agreement should address all of the following key elements to provide clarity and certainty for all co-owners.
The parties and ownership shares section must clearly identify all co-owners by their full legal names and current addresses, as they will appear on the Certificate of Title with LINZ. It must record each co-owner's ownership share as a percentage or fraction (for example, 50%/50% or 60%/40%), the type of co-ownership (tenants in common or joint tenancy), and each co-owner's initial financial contribution to the purchase price and associated costs.
The property description section must include the full street address of the property and the legal description from the Certificate of Title, including the lot number, DP (deposited plan) number, and CT reference. This confirms that the agreement clearly identifies the specific property to which it applies and is consistent with the registered title.
The financial contributions and mortgage section should record each co-owner's initial contribution to the purchase price (deposit, equity, or cash contribution), the total purchase price, any mortgage amount and the lender's name, and — critically — how mortgage repayments, interest, and associated costs will be split between the co-owners. If contributions are unequal, the agreement should address whether the property is still held in equal shares or whether ownership shares reflect the different contributions.
The occupation and use section sets out how the property will be used: will both co-owners live in it as their primary residence, will one co-owner occupy exclusively and pay an occupation rent to the other, will it be rented to a third-party tenant with rental income shared, or will it be used as a holiday or investment property? This section should also address whether either co-owner may sublet or license their portion of the property.
The ongoing costs section defines how all property expenses — council rates, building insurance, maintenance and repairs, body corporate levies (for apartments and units), utility charges — will be shared between the co-owners. It should also set a threshold for maintenance expenditure above which co-owner agreement is required, and specify how emergency repairs are handled.
The decision-making section establishes the governance framework for the co-ownership. Major decisions (sale, mortgage, structural alterations, change of use, new tenancies) should require the written consent of all co-owners. Routine decisions (day-to-day maintenance, property management) may be delegated to a managing co-owner. The agreement should address what happens when co-owners are unable to agree on a major decision.
The right of first refusal section protects each co-owner's interest by requiring a departing co-owner to offer their share to the remaining co-owner(s) before selling to a third party. The notice period (typically 14 to 60 days) and the valuation mechanism for determining the fair market price of the departing co-owner's share should be clearly specified.
The dispute resolution section should set out a clear escalation pathway from direct negotiation to mediation and, if necessary, to arbitration or application to the District Court or High Court under section 339 of the Property Law Act 2007. Including an agreed mediation process can save significant legal costs and preserve relationships between co-owners, particularly family members or friends.
The governing law clause should confirm that the agreement is governed by the laws of New Zealand, including the Property Law Act 2007, the Land Transfer Act 2017, and the Property (Relationships) Act 1976 where applicable. The forms-legal.com Property Co-Ownership Agreement (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Property Co-Ownership Agreement (New Zealand) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/real-estate/property/property-co-ownership-agreement-new-zealand
"Property Co-Ownership Agreement (New Zealand) (New Zealand)." Forms Legal, 2026, https://forms-legal.com/new-zealand/real-estate/property/property-co-ownership-agreement-new-zealand.
@misc{formslegal-property-co-ownership-agreement-new-zealand,
author = {{Forms Legal}},
title = {Property Co-Ownership Agreement (New Zealand) (New Zealand)},
year = {2026},
howpublished = {\url{https://forms-legal.com/new-zealand/real-estate/property/property-co-ownership-agreement-new-zealand}},
note = {Free legal document template. Based on Property Law Act 2007}
}
Frequently Asked Questions
Under New Zealand property law, there are two main ways to hold property with another person. As tenants in common under section 80 of the Property Law Act 2007, each co-owner holds a defined, separate share of the property (for example, 50% each, or 60%/40%). Those shares are distinct and can be transferred, sold, mortgaged, or left to someone in a will independently of the other co-owner's share. As joint tenants, the co-owners hold the property together without distinct shares, and the right of survivorship (jus accrescendi) applies — when one joint tenant dies, their interest automatically passes to the surviving joint tenant(s) regardless of any will or estate planning. This means joint tenancy is commonly used by couples who want automatic inheritance, while tenants in common is often preferred by investors, friends, or family members with unequal contributions who want to maintain independent control of their share. A co-ownership agreement should clearly record which form of co-ownership applies and why, and should be registered on the Certificate of Title with Land Information New Zealand (LINZ).
Yes. Under section 339 of the Property Law Act 2007, any co-owner can apply to the District Court or High Court of New Zealand for an order for partition or sale of the co-owned property, regardless of whether the other co-owners agree. The court has discretion to order that the property be physically divided between the co-owners (partition) or sold and the proceeds distributed according to each co-owner's ownership share. The court will consider all relevant circumstances, including the nature of the property, the purpose for which it was purchased, and the impact of partition or sale on each co-owner. This right cannot be removed by contract — any agreement purporting to prevent a co-owner from applying to court under section 339 is void. A co-ownership agreement can, however, include agreed dispute resolution processes (such as mediation) that the parties must attempt before applying to court, which may delay but cannot permanently prevent a court application. This is why a thorough co-ownership agreement addressing how the co-ownership can be wound up is so important.
The co-ownership agreement itself does not need to be registered with Land Information New Zealand (LINZ), but the ownership structure must be reflected on the Certificate of Title (CT). When property is transferred to co-owners, the proportion in which they hold the property (as tenants in common or as joint tenants) is recorded on the CT by LINZ as part of the registration process under the Land Transfer Act 2017. If co-owners wish to record specific restrictions — such as a caveat preventing one co-owner from transferring their share without the other's consent, or a restriction on sale — these can be noted on the title as a consent notation or caveat lodged with LINZ. A solicitor can advise on whether any interests under your co-ownership agreement should be protected by a caveat or other notation on the title. While the agreement itself is a private document between the parties, ensuring that the CT accurately reflects the co-ownership structure is essential for legal certainty and for dealing with lenders and future purchasers.
The Property (Relationships) Act 1976 (PRA) is a significant consideration in any New Zealand co-ownership arrangement involving people who are or may become de facto partners, spouses, or civil union partners. Under the PRA, qualifying relationship property (property acquired during a de facto relationship, marriage, or civil union of three or more years' duration) is generally divided equally on separation, regardless of legal ownership as recorded on the title. This means that if one co-owner's share of a property is classified as relationship property under the PRA, their partner may have an equal claim to that share on separation, even if the partner is not named on the title. To manage this risk, co-owners who are in qualifying relationships (or who anticipate entering into one) should obtain independent legal advice and consider entering into a contracting-out agreement (sometimes called a pre-nuptial or relationship property agreement) under section 21 of the PRA, which can specify that the property will not be subject to division under the PRA. This is a complex area of law and specialist advice is strongly recommended.
A well-drafted co-ownership agreement should set out a clear dispute resolution process to follow before either party resorts to litigation. The recommended first step is direct negotiation — co-owners should attempt to resolve any disagreement by discussion and written correspondence. If direct negotiation fails, the parties should consider mediation, which is a confidential, cost-effective process helped by an independent mediator who assists the parties to reach a mutually acceptable outcome. In New Zealand, mediation services are available through a number of providers, including Resolution Institute New Zealand and AMINZ (Arbitrators' and Mediators' Institute of New Zealand). If mediation is unsuccessful, the parties can proceed to arbitration (a binding private determination) or apply to the District Court or High Court under section 339 of the Property Law Act 2007 for an order for partition or sale. The Disputes Tribunal is generally not suitable for co-ownership disputes involving real property, as it has a monetary jurisdiction cap of $30,000 and cannot order partition or sale. Seeking legal advice early in a dispute can help co-owners understand their rights and obligations and may reduce the cost and stress of resolving the matter.
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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