Buying a Strata Unit with a Partner — Protecting Your Interests

Buying Together is a Major Decision

Whether you're buying a strata unit with a spouse, a de facto partner, a sibling, a friend, or a parent — the legal mechanics are similar, but the financial and emotional stakes vary. The single most useful step before signing a contract is to talk through, in writing, what happens if circumstances change. Relationships end. Jobs change. Someone dies. Someone needs to buy out the other. Setting expectations now is far cheaper than litigating them later.

This article covers the two big decisions: how you'll hold the title, and whether to put a binding financial agreement in place. Both have implications specific to strata and community title that owner-occupiers of free-standing houses don't face.

Joint Tenants vs Tenants in Common

How a property is held on the title determines what happens when one owner dies, sells, or wants out. There are two options.

Joint Tenants

Each owner holds an equal, undivided share of the whole property. If one owner dies, their share passes automatically to the surviving owner(s) by right of survivorship — regardless of what their will says. This is the typical default for spouses who want simplicity and a clean inheritance path.

Drawback: it doesn't accommodate unequal contributions to the purchase. If one partner put in 70% of the deposit, joint tenancy treats the eventual sale proceeds as 50/50 — a real issue if the relationship ends and the property is sold.

Tenants in Common

Each owner holds a specified share — could be 50/50, could be 70/30, could be any split. On death, the share passes according to the deceased owner's will, not automatically to the survivor. This is the typical default for friends, siblings, business partners, or couples where contributions are unequal.

Drawback: more paperwork (estate planning matters more), and a co-owner who dies intestate (without a will) leaves their share for the next of kin to claim — which can be awkward when the surviving co-owner is not that next of kin.

Why This Matters More in Strata

For a free-standing house, an unhappy ending usually means selling and splitting. For a strata unit, three additional factors apply.

• Levies and ongoing costs are a continuing financial obligation. Whoever stays in the unit after a relationship breakdown remains responsible for the levies — and unpaid levies can be recovered from either co-owner under joint and several liability. The corporation isn't bound by your internal split; it can come after whichever name on the title is easier to find.
• Voting rights at general meetings are typically one vote per unit. If the co-owners disagree on a motion, only one of you votes — and which one can become a real source of friction in committee dynamics.
• Selling a part-share is hard. Unlike shares in a company, a partial interest in a strata unit has a thin market. The practical exit is usually one party buying out the other, or both selling and splitting.

For more on the basics of strata ownership, see Buying a Strata or Community Titled Unit.

Binding Financial Agreements

For couples — married or de facto — a Binding Financial Agreement (the Australian equivalent of a "pre-nup") sits under the Family Law Act 1975 (Cth). It's a written agreement setting out how property and financial resources will be dealt with if the relationship ends.

The Act imposes strict requirements for a BFA to be binding:

1. The agreement must be in writing.
2. Both parties must fully disclose all separate and joint assets and liabilities — and the agreement must list them.
3. Each party must obtain independent legal advice on the advantages and disadvantages of entering into the agreement, and a certificate to that effect must be attached.

If any of these requirements is not met, a court can set the agreement aside. So while a BFA can be drafted by competent solicitors at modest cost, it's not a corner-cutting exercise.

What a BFA Can Do

• Protect assets one party brings into the relationship from being included in the matrimonial property pool if the relationship ends.
• Protect assets earmarked for children from a previous relationship.
• Allow couples to think forward calmly, while the relationship is healthy, about how property would be divided if it ended — avoiding the stress and expense of contested family-law proceedings.
• Specify how a jointly-held strata unit would be dealt with — sold, transferred to one party, refinanced, etc.

What a BFA Doesn't Do

A BFA covers property division on relationship breakdown. It doesn't cover children's matters (parenting arrangements, child support) — those remain governed by the Family Law Act regardless.

Estate Planning

A BFA should be drafted in conjunction with a current will. Joint tenancy passes by survivorship; tenancy in common passes by will. If your title structure and your will don't align with what you actually want to happen, the legal mechanics will override your intentions. A solicitor advising on the BFA will typically check the will at the same time.

What to Do Before You Sign the Contract

• Talk about contributions. Who's putting in what — for the deposit, for ongoing payments, for furniture, for renovations? Write it down.
• Decide on title structure. Joint tenants or tenants in common? With what shares?
• Consider a BFA. Especially if contributions are unequal, if either party has children from a previous relationship, or if there are existing assets either party wants to protect.
• Update your wills. Make sure they reflect what you actually want to happen.
• Get independent legal advice. Each party from their own solicitor. Yes, this costs money. Less than the alternative.

Get in Touch

This article is general information, not legal advice. If you're buying a unit with a partner, talk to a family-law solicitor about the right structure for your circumstances — and a separate conveyancer about the contract.

Acacia Collective manages strata and community title groups across South Australia. If you're buying into a group we manage and have questions about levies, voting structure, or the by-laws, give us a call on 1300 792 255 or email hello@acaciacollective.com.au.