With cohabitation becoming increasingly common in South Africa, more couples are choosing to buy property together without being married. While this arrangement offers flexibility, it also comes with legal challenges, especially when the relationship ends. What happens to the house when unmarried couples go their separate ways? This article explores the legal implications of joint property ownership for unmarried couples in South Africa and offers advice on how to protect your rights.
Legal Context: Property Ownership in South Africa
In South African law, property ownership is determined by the title deed. When a couple buys a house together, their names are typically registered as co-owners. This means they legally share the property according to the ownership percentages specified in the deed. If no percentage is recorded, ownership is presumed to be equal.
However, issues can arise when the relationship ends, particularly if the couple did not clearly define their financial contributions or establish a cohabitation agreement.
Key Considerations for Unmarried Couples
- Title Deed and Ownership Shares
The title deed is the primary document that determines ownership. If both partners’ names are on the deed, they are considered joint owners, regardless of who contributed more financially. - Financial Contributions
Disputes often arise over unequal contributions toward the deposit, bond repayments, or maintenance costs. Without a written agreement, it can be challenging to prove financial input, especially in cases where one partner paid more than the other. - Legal Protections
Unlike married couples, cohabiting partners do not automatically benefit from legal protections such as community of property or accrual systems. This means that the division of assets is governed strictly by the ownership structure and any agreements between the parties. - Cohabitation Agreements
A cohabitation agreement is a legally binding contract that outlines how assets, including jointly owned property, will be divided if the relationship ends. It can also address issues like bond repayments, maintenance costs, and the process for selling the property.
Splitting Assets: What Happens When the Relationship Ends?
- Selling the Property
If both parties agree to sell the property, the proceeds are usually divided according to the ownership percentages in the title deed. However, disputes can arise if one partner refuses to sell or demands a larger share. - Buying Out the Other Partner
In some cases, one partner may wish to retain the property by buying out the other’s share. This requires a property valuation and legal assistance to transfer ownership. - Disputes and Legal Action
If the couple cannot agree on how to divide the property, they may need to seek legal intervention. South African courts can order the sale of the property and determine how the proceeds should be distributed.
Real-Life Case Study
In a landmark case, a Cape Town couple purchased a home together and contributed equally to the bond. However, after their breakup, one partner demanded a larger share, arguing that they had paid for renovations and maintenance. The court ruled in favor of the title deed ownership structure, emphasizing the importance of documenting contributions and agreements.
Protecting Your Interests
- Draft a Cohabitation Agreement
This agreement should detail each partner’s financial contributions, ownership percentages, and plans for the property in case of a breakup. - Keep Records of Financial Contributions
Maintain proof of payments for deposits, bond installments, renovations, and other expenses to substantiate claims if disputes arise. - Seek Legal Advice Early
Consult a legal professional when purchasing property together to ensure that your rights are protected.
Engelsman Magabane Incorporated: Your Partner in Property Disputes
Navigating joint property ownership can be complex, especially for unmarried couples. At Engelsman Magabane Incorporated, our experienced attorneys can assist with drafting cohabitation agreements, resolving disputes, and providing expert advice on property matters. Contact us today for tailored legal solutions.
Conclusion
While buying property together as an unmarried couple can be a smart financial move, it’s crucial to plan for all eventualities. A cohabitation agreement, clear ownership structure, and proper documentation can help prevent disputes and protect your investment. When in doubt, seek professional legal advice to safeguard your rights.
Good day
Im herman and afriekaans speaking please understand my english is not very good, my mom and my dad bought this house years a go then they had a hard time because the owner past a way and tax is not paid till today we had plenty trouble with ekurhuleni and lawyers telling we are responsible for tax and rates but its wrong the house was paid in full the owner past away and the cantract stipulated the owner is responsible for all tax and rates till the tittle deed is in our name so now ekurhuleni refuse to give us information they would sent us a water account maybe twice a year and a big amount of money they want so when i ask them i want information they refuse any information we just want to get this hous on our name me and my mom and the husbend she have we are all pensioners im in a wheelchair i can not stand up i realy wish some one can realy help us because we think ekurhuleni want to take this house to put us on the street and the day that happen the will be looking for something that wont go down good so if any one will be willing to take on ekurhuleni and help us it will be hugely appreciated
Good Day Herman,
We would advise that you speak to one of our dedicated lawyers on this matter as they would be able to answer your question more thoroughly.
Ok i thought i am talking to a lawyer, would you please let me talk to some one who could maybe help? Point me in the rite direction?