What is a property sharing agreement and should I have one?

A property sharing agreement is a document that sets out the rights and obligations of each of the owners where a group of people purchase a property together. It is a useful document to have when buying a property with friends, flatmates, siblings, or extended family, as it can help to avoid disputes, and protect each person’s interests. It can also be required by some banks before lending to a group.

WHAT DOES A PROPERTY SHARING AGREEMENT COVER?

A property sharing agreement generally includes information such as:

The address and purchase price of the property.
The details of the parties who are buying the property.
The initial cash contribution and percentage share of each co-owner.
The purpose for purchasing the property.
How the parties plan to pay for outgoings, mortgage payments, maintenance and repairs.
Whether the parties intend to seek independent legal advice on the implications of the agreement.
Who the mortgagee is (the bank or other lender).
Whether the parties want a right of first refusal option, which means that if one party wants to sell their share, they have to offer it to the other co-owners first.

But be aware that there are both benefits and risks to a property sharing agreement.

Benefits can include that the agreement will:

Help you get on the property ladder faster, by pooling your resources with others.
Reduce the risk of disputes and misunderstandings, by clarifying the expectations and responsibilities of each co-owner.
Protect your interests, by specifying how decisions are made, and how conflicts are resolved.
Provide flexibility, by allowing you to sell your share or buy out another co-owner if your circumstances change.

Some of the risks of a property sharing agreement are that it can:

Complicate the process of buying and selling a property, as you have to agree with the other co-owners on the terms and conditions.
Expose you to liability for the other co-owners’ debts, as co-borrowers are usually jointly and severally liable for the mortgage.
Lead to disputes and misunderstandings, if the co-owners have different expectations or circumstances change.
Limit your flexibility, as you may not be able to sell your share, or buy out another co-owner, without their consent or the consent of the bank.

To minimise your risks, it is advisable to make a valid property sharing agreement that covers all the important aspects of the arrangement, such as how decisions are made, how costs are shared, and how disputes are resolved. Make sure all proposed co-owners then sign it.

We have experts who can help you to draft your agreement, or to review one that has been provided to you.

"Custody" isn't actually a legal word in NZ anymore - here's what we say instead

20 September 2026

He taonga to mokopuna, kia whāngaia, kia tipu, kia rea - a child is a treasure, to be nurtured, to grow, to flourish. A common thing we hear from clients is "I want custody of my children." While most people understand what "custody" means, the reality is that custody is no longer a legal term used in New Zealand family law. In fact, the term was removed from our legislation more than 20 years ago. So, what changed? The Care of Children Act 2004 replaced the old concepts of "custody" and "access" with language that focuses more directly on children's needs and parental responsibilities. Instead of talking about custody, the Family Court now talks about: Day-to-day care (who the child lives with and who looks after them on a daily basis); and Contact (the time a child spends with a parent or other important person when they are not in that person's care). The change was intentional. The law moved away from language that can sound like a child is something to be "owned" or "won" by one parent. What does "day-to-day care" mean? Day-to-day care refers to the practical care of a child, including: Where the child lives; Their daily routine; School attendance; Meals, bedtime, and general supervision; and The everyday decisions involved in raising them. A parent can have: Sole day-to-day care; or Shared day-to-day care arrangements. There is no legal presumption that one parent should have day-to-day care over the other. The Court's focus is always on what is in the child's welfare and best interests. What about "contact"? What many people previously called "access" is now referred to as contact . Contact can take many forms, including: Weekend visits; School holiday time; Telephone calls; Video calls; Supervised contact; or Other arrangements that allow a child to maintain a relationship with an important person. The Court recognises that children generally benefit from having ongoing relationships with both parents, provided doing so is safe and in their best interests. Does this mean I can't say "custody"? Not at all. Many people still use terms like "custody," "shared custody," and "access" in everyday conversation, and most lawyers will understand exactly what you mean. However, if you're involved in Family Court proceedings, you'll hear terms such as: Day-to-day care Contact Guardianship Parenting orders These are the legal concepts that will appear in Court documents and orders. Why does the language matter? The shift away from "custody" reflects a broader change in how New Zealand family law views parenting after separation. Rather than focusing on which parent "gets" the child, the law focuses on: The child's welfare and best interests; Maintaining important relationships; Encouraging parents to work together where possible; and Ensuring children are protected from harm. Ultimately, Family Court decisions are not about determining a "winner" and a "loser." They are about creating arrangements that best support the child's wellbeing. As family lawyers , we offer advice, guidance and representation in family law matters, if you would like assistance or to talk to someone, contact us today. Written by: Eva Leutele

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