Residential Property Co-ownership Deed (Tenancy in Common)

What is a co-ownership deed (tenancy in common)?

A co-ownership deed is a declaration that a property is to be owned as tenants in common in defined shares. This deed therefore severs a joint tenancy. This deed is designed for use in respect of properties in England and Wales.

What are the different types of co-ownership deed?

A co-ownership deed might:

• divide the shares between the parties equally;
• divide the shares between the parties in unequal shares, depending upon the contribution they have made to the property.

Is it mandatory to have a co-ownership deed?

Yes. If the parties would like to sever a joint tenancy and allocate their ownership in different shares, then it is necessary to do this via deed.

What is a tenancy in common?

A tenancy in common is a way of owning property. In a tenancy in common, each party will own an individual share (which does not have to be an equal share). A tenant in common can stipulate that their share of the property will go to somebody else in their will. A tenancy in common is therefore frequently used where somebody wants to leave shares of their property to somebody else after their die (e.g. children from a former marriage), or where one party has contributed more to the property and the parties wish for this to be reflected in the ownership.

What is a joint tenancy?

Where a property is owned as joint tenants, neither owner has a defined share as they both own the whole of the property. When a party to a joint tenancy dies, the other owner will own the whole of the property in their sole name. It is not possible for a joint tenant to leave a portion of the property to somebody else via a will.

What are the prerequisites of a co-ownership deed?

Before entering into this agreement the parties will:

• check the ownership details, to establish how the property is currently owned (this will be on the title deeds)
• check whether they need the consent of their mortgage lender
• discuss and agree on the relevant shares for the tenancy in common

Who can enter into a co-ownership deed?

The parties to the deed will be the legal owners of the property, who will own the shares of the property as a tenancy in common under the deed.

What is the duration of a co-ownership deed?

The co-ownership deed is designed to be a permanent agreement, which will end upon the sale of the property.

What has to be done after the parties have signed the co-ownership deed?

Once the parties have executed the document as a deed, they should each retain a copy. It is not compulsory to register the deed with Land Registry but it is possible to do so that there is evidence of the deed on the public record for the property.

Is it necessary to register a co-ownership deed?

It is not compulsory to register the deed with Land Registry but it is possible to do so that there is evidence of the deed on the public record for the property.

Is it necessary for the signatures to a the co-ownership deed to be witnessed?

The document must be executed as a deed*. The signature of each party to a deed must be witnessed. The witness should:

• be over the age of 18
• have mental capacity
• not be a party to the deed

The document is not reviewed by a lawyer to ensure that the legal content applies to the personal situation of the parties. For assistance finalising, reviewing and executing a deed, advice should be sought from a lawyer who is regulated by an approved regulator in the legal services sector. It is possible to search for a lawyer using the Law Society – find a solicitor webpage.

What are the costs involved in the finalisation of a co-ownership deed?

There may be costs where the parties choose to:

• seek legal advice* - the legal representative will advise of their fees in advance
• register the deed with Land Restriry – the fees are available on the land registry website.

The document is not reviewed by a lawyer to ensure that the legal content applies to the personal situation of the parties. For assistance finalising, reviewing and executing a deed, advice should be sought from a lawyer who is regulated by an approved regulator in the legal services sector. It is possible to search for a lawyer using the Law Society – find a solicitor webpage.

What must a co-ownership deed contain?

A co-ownership deed will:

• identify the parties – the people who co-own the property
• identify the property – including the address and title number
• identify the shares and make a declaration of trust – this will explain the shares of ownership under the tenancy in common (and how these will be defined/calculated if not equal)
• state how the property should be valued in the event of a sale

What laws apply to a co-ownership deed?

The following laws are relevant to a co-ownership deed:

• The Law of Property Act 1925
• The Land Registration Act 2002
• The Trusts of Land and Appointment of Trustees Act 1996

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.