Property is expensive, and many people buy together: couples, relatives, friends, chamas and investment groups. Pooling money makes larger purchases possible and spreads the risk. But joint ownership is a long relationship, and the arguments that come later are usually about things that nobody discussed at the start. This guide covers the basics. It is general information; take legal advice before you commit.

Ways to own together

Co-owners may hold property in more than one form. In a joint tenancy, owners hold the property together, usually in equal shares, and on the death of one the others take the share. In a tenancy in common, each owner holds a distinct share, which may be unequal, and can leave it to their heirs. A company or a chama registered as a legal entity can hold the property in its own name, with members holding shares in it. Each structure has different consequences for transfers, inheritance and tax, so choose deliberately.

Agree the contributions

Write down who is paying what: the deposit, the monthly loan repayments, legal fees, repairs and rates. Decide whether shares reflect contributions, and what happens if one person pays more at some point. The costs of buying property checklist lists the costs to share, and stamp duty on property transfers explains one of the biggest.

Put the agreement in writing

A co-ownership agreement should cover: who owns what share, how decisions are made, how the property will be used or let, who manages it, how income and expenses are split, what happens if someone cannot pay and how someone may leave. It should also deal with death, divorce and disputes. A lawyer can draft it in a few hours, which is cheap compared with the cost of a dispute.

Do the due diligence together

Before you buy, check the title, the seller and the property, as you would alone. Land due diligence checklist before you buy and land transfer process in Kenya, step by step explain what to verify. Make sure every co-owner's name appears correctly on the documents. Beware of purchases where one person signs for the group without authority.

Agree how you will run it

If you plan to let the property, agree who finds tenants, collects rent, pays bills and keeps records. Rent from a jointly owned property is shared in proportion to ownership, and each owner is taxable on their share. Read rental income for individuals and companies and filing for several rental properties, and use the rental income tax calculator to estimate each owner's tax. Keep proper records; records every landlord should keep lists them, and the rental property and tenant register helps.

Plan for the loan

If the purchase is financed, find out whether the loan is joint and several. In that case, the bank can pursue any one borrower for the whole debt if the others default. Discuss what happens if a co-owner loses their income. Insurance on the borrowers' lives is often required and is worth considering for the others in any case.

Plan the exit

Every co-ownership ends: someone wants to sell, someone dies, someone needs the money. Agree in advance how an owner can sell their share, whether others have the first right to buy it and how the price is set. Decide when the property will be sold altogether. Without an exit plan, one owner can be locked in for years against their wishes.

Tax when you sell

When you sell, capital gains tax may apply to each owner's share of the gain. The capital gains tax calculator estimates it, and selling a property: capital gains tax steps explains the process. Keep records of the purchase cost and improvements for every owner.

Keep communication open

Hold regular meetings, share accounts and keep minutes. Most disputes grow from silence. Treat the property like a small business, with a budget and a record of decisions. Co-ownership works best when everyone knows what has been agreed, what is happening and what happens next.

Questions to settle before you sign

Ask each person: Why are we buying, and for how long? How will we decide when we disagree? What happens if one of us cannot pay for six months? Can a co-owner sell to an outsider? What if someone dies or divorces? Writing honest answers to these questions before any money moves is the cheapest insurance a group of buyers can have, and it often reveals differences that are far better discovered early.