Owning land or a home remains a major milestone. But with property prices rising steadily, more people are choosing to buy property jointly. From couples building their dream home, to siblings investing inheritance, or friends pooling resources for plots, joint property is becoming increasingly common.
Simply put, it means two or more people legally owning a property. They have rights to use, sell, or transfer it under agreed terms.
In Kenya, it is registered in two main ways. Joint tenancy and tenancy in common. However, while splitting the cost may seem easy, sharing legal and financial responsibilities is more complex.
Here's what you must consider before diving into joint property ownership.
Who Pays What?
Before making any payments, joint buyers should agree, in writing, on who contributes what. This includes the purchase price, legal fees, stamp duty, registration, and even future development costs.
Unequal contributions without clear records often lead to disputes, especially when ownership shares are recorded as equal. You should also agree on how to handle ongoing costs like land rates, loan repayments, or construction expenses.
The best approach is to open a joint bank account for the property, with dual signatories and a clear tracking system for receipts and expenses. Verbal agreements can be forgotten but paperwork keeps things transparent.
Financing the Property
If you're taking a loan, you will likely need to apply for a joint mortgage or become joint guarantors. This means all parties are equally responsible for repayments.
If one person defaults, the others must cover the shortfall. Banks will review your combined income and credit history, so it’s important to be financially aligned before applying.
If you’re buying in cash, ensure the agreed ownership shares are clearly documented in the sale agreement and reflected on the title deed. This avoids future conflicts and ensures everyone knows where they stand.
Legal Protections and Documentation
Many people ignore the legal side, which often leads to costly court battles. A lawyer should not just process the sale. They should help you draft the agreement.
It should outline:
ownership percentages,
responsibilities,
what happens if one person wants to sell,
how disputes will be resolved,
what happens if one party dies or becomes incapacitated.
For married couples, the law assumes 50/50 ownership unless stated otherwise. But for friends, siblings, or unmarried partners, the law does not offer automatic protection.
Hence, the need to specify everything in writing. Also, ensure all names are on the title deed, not just one.
