Multigenerational living is on the rise in New Zealand, often done by way of informal arrangement between family members which can end in a dispute when relationships break down or if a family member needs care or passes away.
A lot of issues can be avoided if proper care is taken, and a Property Sharing Agreement is put in place. A well drafted Property Sharing Agreement will;
- protect each party’s contribution to the purchase of a property
- address how increases in property values will be dealt with
- address who pays for maintenance of, and improvements to, the property
- provide for what happens when one of the property owners dies
- provide a dispute resolution processes
- address residential care arrangements and what happens when one of the property owners needs to go into care.
A Property Sharing Agreement can be used to avoid conflict at a later stage and prevent significant costs to resolve conflicts between family members.
Please contact us if you want to follow up on this.
