When you are buying a property with another person it is important that you are very clear at the outset on the type of co-ownership structure you wish to choose . It is also important to understand the consequences of co ownership and your rights and entitlements . You may be purchasing a property with a family member, friend or partner so it is important both parties understand the legal rules of co- ownership.
More couples than ever are choosing to cohabitate We regularly consult with couples on what each person’s rights and entitlements are in the event of a relationship breaking down or on the death of a co habiting partner . Co habiting couples do not have the same property rights and entitlements as married couples so knowledge is important prior to making the decision to buy property together or before moving into a property owned and registered in the name of one person in the relationship only .
The number of cohabiting couples in Ireland rose by 6% since 2011. Of the 1.22 million families in Ireland (Census 2016), 152,302 couples are counted as cohabiting -. Whilst discussing a co habiting or or co ownership agreement it is not the most romantic consideration before buying a property or moving in together we recommend asking all the questions you need answered at the outset . This will ensure that you both understand the legal framework of co owners and co habitees. A clearer understanding of the legal framework will be of assistance where the co living or co owning relationship comes to an end
Types of Ownership
There are two types of co ownership in Ireland. Careful consideration should be given by you to which type of co ownership suits your particular circumstances. You should fully understand the consequences of death of a co owner or the consequences of a breakup of a relationship if only one person owns the property you reside in . Individual consultations are common for us to explore with clients the best options and considerations for each persons specific situation.
Joint Tenants
A Joint tenancy is most common property registration with couples. The joint registration shows both people own the property jointly. If one person pre deceases the other, the surviving person will automatically become the full owner of the full property. The property will pass automatically by the legal rule of survivorship . The property does not pass under the deceased persons Will . It does not form part of the deceased persons estate. The surviving owner by way of a simple land registry application become the sole full owner. The is most common when one spouse predeceased the other.
Tenants in Common
This type of co ownership means that the ownership is held in clearly defined shares for example 50/50 or 70/30 . This commonly arises if friends buy a property together and share in the purchase in different amounts financially .Ownership can be agreed pro rata per financial contribution. With a tenancy in common you can specifically transfer or bequest your share of the property to someone else subject to any terms of a co ownership agreement . Your share is tangible asset that does not automatically pass to the co owner .It is very important for that reason all co owners put a Will in place to specifically stipulate who is to inherit their share.
Wills & Cohabiting property rights
We always recommend you put a will in place and particularly when purchasing a property. When buying a property it is prudent to update an existing will . Making a will regardless of your marital status is important . Maybe you are a cohabitant, single, widowed or married person .What ever your circumstances we guide you to putting in place what you need to protect your loved ones and provide for your wishes.
Co habiting couples need to be very aware the legal and property protections available to married couples and civil partners is very different . Unlike a married couple or civil partnership, there is no automatic right of inheritance on the death of either partner in a cohabiting relationship. Making a will including your co habiting partner is imperative if you wish your property and other possessions to pass to them . A co habiting discussion with us allows you to understand your individual legal circumstances . Planning ahead in a co habiting relationship is crucial and makes all the financial difference on the death of one of you. There is peace of mind in knowing you are legally protected.
Co-Ownership Agreements
A Co ownership agreement is a legal document drafted up by the parties with their Solicitor so all the terms of the joint purchase are committed to riting and a signed agreement available to all particularly in the case of disagreement or conflict down the road. It can specifically address issues such as who is contributing what funds and in what proportion, who will contribute to paying any mortgage, how it will be paid, and what is to happen if the relationship comes to an end or if one party wishes to sell the property. It should also provide for what is to happen if one party is unable to meet their financial obligations and if you agree first option to buy is to be given to the other co owner .Clarity in an agreement supports any change in the relationship .
Cohabitation Property Rights
Cohabitation is defined by the act as two same sex or opposite sex adults who are not married to each other, not registered in a civil partnership and are living together in an intimate and committed relationship. The Family Home Protection Act 1976 gives protection to married couples and in particular spouses to consent to or veto any sale or mortgage of the family home by the other spouse and written consent of the non registered spouse must be obtained. Cohabiting couples do not have same protections in law and if you are living with a partner where the house is in their sole name there is no legal requirement for the partner to obtain your written consent before they can sell their house.
In a relationship breakdown a married couple when seeking a judicial separation or divorce who cannot agree on what is to happen to the property or family home can seek a property adjustment order. This is where the Court will decide what happens to the property.
If you are cohabitating and the relationship breaks down ,the family home will belong to the person with the legal title to the property. The duration of your relationship does not give you automatic rights in the property like a spouse would have . You will as a cohabitee seek redress under The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 . When This legislation was enacted much of the focus was on the establishment of rights for of civil partnership for same sex couples . In our opinion the Act does not go far enough to protect co habiting couples.
To qualify as cohabitants to avail of any redress under the Act you must be living in an intimate and committed relationship together for 2 years if you have a child together longer if you do not have children , 5 years . If the relationship were to ends and you can assert that you are financially and economically depend on the other cohabitant with whom they have been living then you can apply to the courts for redress. The redress scheme is to provide protection for a financially dependent member of the couple if a long term cohabitating relationship ends either through separation or death. Every co habiting situation is different call Avril Aisling or Sharon to understand your rights and what protections you need to put in place for your family or when you are purchasing jointly.
Every cohabiting and co-ownership situation is different. Call Avril, Aisling, Sharon or William to advise you on +353 65 6828383
