Love is in the air, and few commitments are as meaningful as buying a home with your partner or spouse. If sealing the deal this Valentine’s Day comes with a new set of keys, it’s essential to understand both the benefits and the potential pitfalls of co-owning property, says Bradd Bendall, BetterBond’s National Head of Sales.
While South Africans are not waiting for marriage before entering the property market, married and cohabiting couples account for roughly 30% of all property transactions, according to property data. Buying with a partner offers several advantages. Beyond the emotional security of owning a home together, combining incomes improves affordability and increases the likelihood of securing a larger home loan.
Shared costs, such as the deposit, monthly bond repayments, levies, and municipal accounts, can also make home ownership more accessible. However, joint ownership comes with important legal and financial considerations, regardless of whether a couple is married or unmarried.
What the law says
In South African law, property ownership is not determined by relationship status or emotional commitment, but by what is recorded on the title deed. If both partners’ names appear on the title deed, they are legally recognised as co-owners, irrespective of who contributed more financially. This applies equally to married and unmarried couples.
Legally wed
Married couples benefit from certain legal protections, although these depend on the type of marriage. Couples married in community of property share all assets and liabilities equally, which means both spouses must sign the offer to purchase and all related documents.
For couples married out of community of property under an antenuptial contract, ownership and responsibility are governed by the terms of that agreement. Civil unions and customary marriages follow similar principles. Unless otherwise specified, a customary marriage is automatically a community of property marriage.
If an antenuptial contract is concluded before the customary marriage, it will determine how property is owned and managed. When applying for a home loan, married couples are assessed on their combined income, with both partners’ credit profiles taken into account.
Cohabiting partners
Unlike married couples, cohabiting partners do not automatically enjoy legal protections such as community of property, the accrual system, or spousal claims. In the event of a separation, ownership and division of the property are determined solely by the title deed and any agreements in place between the parties.
From a tax perspective, unmarried couples are taxed individually on their respective shares of any rental income, based on the ownership percentages reflected on the title deed. For example, a partner with a 60% share must declare 60% of the rental income to SARS. In marriages in community of property, rental income is split equally between spouses.
Money matters
Financial disagreements don’t usually feature in the early stages of a relationship, but they can surface at any time. Disputes may arise over contributions to the deposit, monthly bond repayments, renovations, maintenance costs, or ongoing household expenses, particularly if the relationship ends.
There is also an important risk to consider: if one co-owner cannot meet their bond obligations, the bank may recover the outstanding amount from the remaining co-owner(s). In some cases, a single signatory on the bond could be held liable for the full repayment. Regardless of who paid more towards the purchase, if both names are on the title deed, both parties are legally responsible.
Put it in writing
To avoid future disputes, a legally binding agreement is essential. This should clearly outline ownership percentages, deposit contributions, bond repayment responsibilities, and how maintenance and renovation costs will be handled. It should also include an opt-out clause, giving the remaining co-owner the first right of refusal should one partner wish to sell their share.
Couples are also advised to keep detailed records of all property-related financial contributions, including invoices and bank statements, in case disagreements arise later. Too often, legal advice is only sought once problems occur. Starting your co-ownership journey, whether married or not, with proper legal guidance ensures both parties’ interests are protected from the outset.
Love may be blind, but your property contract shouldn’t be. Taking the time to formalise your agreement and seek professional advice upfront could save significant heartache down the line.
