Essay on Co-ownership in Australia
Added on 2020-03-28
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Running head: PROPERTY LAWProperty LawName of the StudentName of UniversityAuthor Note
1PROPERTY LAWProperty Co-ownership is a form of ownership where two or more persons share theownership of any property. Co-ownership is a way that enables the Australian young people, inparticular, to purchase houses that are available at high prices and is unaffordable for most of thepeople. As it is, a known fact that every person dreams of owning their own home whichbecomes unattainable to realize owing to the incline in the prices of the house, in particular forthose who are single. While couples tend to pool their resources and incomes to be able to afforda home, it becomes very difficult for those who are singles as they rely on single source ofincome and one savings account1. This inconvenience makes them resort to co-ownership forpurchasing property either with a friend or family member. Where two or more persons take anestate or interest in land on lease, mortgage, application, transfer such persons are required tohold the land or property as joint tenants or tenants in common. This clearly signifies that co-ownership is an increasing trend in Australia, especially for young peoples and those who aresingle. This essay discusses about the advantages and the necessity of co-ownership in Australia. When two or more persons take a property on tenancy, they do it as either joint tenants ortenants in common. The reasons behind the Australians opting for co-ownership are two-fold.Firstly, co-ownership provides the Australians, with the affordability to purchase houses that areotherwise, unaffordable for them2. Further, for people who are purchasing houses for the firsttime, it becomes more difficult for they have to put a deposit together. The purchasers who areyoung and those who are single and rely upon the single income and savings source, finds itmore difficult compared to those who purchase such homes by way of co-ownership. Peoplepurchasing homes in co-ownership have the option to split the deposit as both the co-owners1 Duncan, William D., et al. "Property law review issues paper 4–Mortgages, Co-ownership, Encroachment andMistake." (2016).2 Blandy, Sarah. 14th Australasian Property Law Teachers’ Conference 2017 Beyond Sole Ownership Curtin LawSchool, Curtin University, Perth, Western Australia 26–29 September 2017 Draft Conference Programme. Diss.Faculty of Law, University of Southampton, 2017.
2PROPERTY LAWpool together their respective savings that improves the position of the co-owners with respect tothe deposit of the homes.Secondly, there is a trend of late marriage in Australia, which implies majority of theAustralians usually do not purchase a property or home of their own. Therefore, single personsmay consider their friends and siblings to assist them to achieve an investment property. Anotherreason that leads to an incline in the co-ownership is an increase in the borrowing capacity thatis, the persons sharing the ownership gets to split the deposit money which otherwise would havebeen paid by the single person purchasing or renting a house3. The advantage of pooling togetherthe deposit of the house is that it enables the co-owners to join their savings and pay a higherdeposit, which enables them to avoid the expensive mortgage insurance. As mentioned above that, in order to purchase a property or an interest in land by co-ownership, the co-owners are said to hold such interest in land or the property as tenants either incommon or as joint tenants4. Tenants in common are a form of tenancy where each person has ashare of the property and they own the property purchase or taken on lease together. For instanceA, B and C purchase a property for $90,000. A makes a contribution of $20000, B makes acontribution of $30000 and C makes a contribution of $ 40000. Here, the purchase of theproperty has been made by way of co-ownership and A, B and C are the co-owners of theproperty. The transfer shall be followed as A shall be entitled to 2/9 share; B shall be entitled to3/9 share and C shall be entitled to 4/9 share being the tenants in common5. 3 Rigsby, Bruce. "A survey of property theory and tenure types." Sydney University Press, 2014.4Palmer, Jane, et al. "Green tenants: practicing a sustainability ethics for the rental housing sector." LocalEnvironment 20.8 (2015): 923-939.5 Altmann, Erika. "Apartments, co-ownership and sustainability: Implementation barriers for retrofitting the builtenvironment." Journal of environmental policy & planning 16.4 (2014): 437-457.
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