Co-ownership, decoded
Plain-English definitions for 65+ co-ownership and co-buying terms. From co-borrower to partition action. Clear, neutral explanations for buyers and co-owners.
A
Ability to Repay(ATR, ATR rule)
Ability to Repay is the federal lending standard requiring lenders to verify that borrowers can afford a mortgage. In co-buying, each co-borrower's finances are evaluated individually.
Joint and Several LiabilityJoint MortgageCo-borrowerFully Underwritten Approval
Annual Pass(Group Pass, Co-ownerOS Pass)
The annual subscription providing a group full access to Co-ownerOS™ for governance, agreement management, and ongoing co-ownership operations.
Co-ownerOS™Document VaultProperty Events CalendarCo-ownership Lifecycle
B
Buy-Sell Provision(Buy-sell agreement, Buy-sell clause)
A buy-sell provision is a contractual clause in a Co-ownership Agreement that defines the terms under which co-owners can buy or sell ownership shares.
Right of First RefusalBuyoutExit StrategyCo-ownership Agreement
Buyout(Buy out, Co-owner buyout)
A buyout is when one or more co-owners purchase a departing co-owner's ownership interest. It often requires refinancing if the departing co-owner is on the mortgage.
C
Capital Contributions(Initial contributions, Upfront contributions)
Capital contributions are the upfront financial investments each co-owner makes toward purchasing a property, including down payment, closing costs, and other initial expenses.
Cash to Close(Funds to close, Amount due at closing)
Cash to close is the total amount co-buyers must bring to closing, including down payment, closing costs, and prepaid items. Each party's contribution must be documented and sourced.
Closing Costs(Settlement costs, Transaction fees)
Closing costs are the fees and expenses due at settlement beyond the down payment. In co-buying, how these costs are split among co-buyers should be agreed upon before closing.
Co-borrower(Co-applicant, Joint borrower)
A co-borrower is a person who applies for and shares responsibility for a mortgage alongside other borrowers. Co-borrowers have both loan liability and often an ownership interest.
Co-signerJoint MortgageJoint and Several LiabilityPre-approval
Co-buying is when two or more people who are not married to one another purchase a residential property together as a shared investment.
A co-buyer is an individual participating in the purchase of a residential property with one or more other parties who has not yet closed the transaction.
A co-owner is an individual who holds title to a residential property jointly with one or more other parties after the purchase transaction has closed.
Co-ownerOS™(Co-owner OS, CoownerOS)
CoBuy's software platform for co-buyers and co-owners — structuring shared homeownership from purchase through ongoing operations to exit.
Annual PassDocument VaultProperty Events CalendarCo-ownership Lifecycle
Co-ownership is the state of jointly holding title to a residential property with one or more other parties who are not married to one another, after closing.
Co-ownerTenants in CommonJoint Tenancy with Right of SurvivorshipCo-ownership Agreement
Co-ownership Agreement(Co-ownership contract)
A legally binding contract that defines rights, responsibilities, finances, and exit terms for people who co-own a home together.
GovernanceCo-ownership LifecycleExit StrategyDispute Resolution
The Co-ownership Lifecycle is the full duration of a co-ownership arrangement, from initial planning through the purchase transaction, active co-ownership, and eventual exit.
Co-ownership Risk Calculator(CoBuy Risk Calculator, Risk Calculator)
A financial risk exposure tool that estimates the dollar cost of common co-ownership failures using court records and foreclosure data.
Co-signer(Cosigner, Loan guarantor)
A co-signer guarantees a mortgage by assuming full repayment liability without holding an ownership interest in the property.
Co-borrowerJoint and Several LiabilityJoint MortgageNon-occupant
CoBuy is the platform that makes home co-ownership simpler, safer, and a smart investment across the full Co-ownership Lifecycle.
CoBuy Budget Calculator(Budget Calculator, Co-buying Calculator)
An affordability calculator that shows 2–4 co-buyers their combined purchasing power, individual shares, and total cost of ownership using live mortgage rates.
CoBuy Co-buying Rate™(Co-buying Rate)
The CoBuy Co-buying Rate is the share of U.S. home purchases that involve co-buyers: 31.5% in 2026, up from 25% in 2021. It is the flagship metric of the CoBuy Co-ownership Index.
CoBuy Co-ownership Index™(Co-ownership Index, CoBuy Index)
The CoBuy Co-ownership Index is CoBuy's recurring data series on co-ownership in America: 31.5% of U.S. home purchases now involve co-buyers, and 64 million people co-own a home.
CoBuy Co-buying Rate™Co-ownershipCo-buyerCoBuy Suitability Score™
CoBuy Co-owner Count™(Co-owner Count)
The CoBuy Co-owner Count is CoBuy's estimate of how many Americans co-own a home with someone other than a spouse: about 64 million in 2026. It is a child metric of the CoBuy Co-ownership Index.
CoBuy Co-ownership Index™CoBuy Co-buying Rate™Co-ownerCo-ownership
CoBuy Decision Brief™(Decision Brief, CoBuy Brief)
The structured assessment delivered upon completing the CoBuy Wizard — covering a group's co-buying eligibility, risk profile, alignment status, and concrete next steps.
CoBuy Suitability Score™(Suitability Score)
The CoBuy Suitability Score is a 0-to-100 grade for how well a specific home can host co-ownership, scored across 11 dimensions and graded A to F. Verified capabilities only.
CoBuy-Suitable™ HomesCo-ownershipCoBuy Co-ownership Index™CoBuy-certified™ Pro
CoBuy Wizard(Wizard, CoBuy intake)
CoBuy's structured intake and alignment tool — helping groups assess whether co-buying is realistic, surface risks, and get aligned before committing time or money.
CoBuy Decision Brief™EligibilityViabilityCoBuy Budget Calculator
CoBuy-certified™ Pro(Certified Pro, CoBuy Pro)
A professional credential for real estate agents trained in co-ownership fundamentals, group dynamics, and the CoBuy ecosystem.
CoBuyCoBuy Decision Brief™CoBuy WizardCo-ownership Agreement
CoBuy-Suitable™ Homes(CoBuy Suitable Homes, CoBuy-Suitable)
CoBuy-Suitable homes are properties scored and featured under the CoBuy Suitability Score for their fitness for co-ownership. The classification dates to 2018.
CoBuy Suitability Score™CoBuy Co-ownership Index™Co-ownershipCo-owner
Community Property(Marital property, Community property state)
Community property is a legal framework in certain states where most assets acquired during marriage are owned equally by both spouses, regardless of who paid for them.
Joint Tenancy with Right of SurvivorshipTenants in CommonVestingEstate Planning
Compound(Family compound)
One property set up so more than one generation of a family can live there with real privacy: separate living areas with their own entrances, often a second kitchen, and shared space everyone uses.
Co-ownershipCo-ownership AgreementTenants in CommonCoBuy Suitability Score™
D
Deed(Property deed)
A deed is the legal document that transfers ownership of real property from one party to another. It records the names of all owners and their vesting structure.
Default(Co-owner default, Breach)
In co-ownership, default occurs when a co-owner fails to meet obligations defined in the Co-ownership Agreement, such as missing mortgage payments or violating agreed terms.
Joint and Several LiabilityDispute ResolutionForced SaleCo-ownership Agreement
Dispute Resolution(ADR, Alternative dispute resolution)
Dispute resolution is the structured process in a Co-ownership Agreement for resolving disagreements—typically starting with negotiation, then mediation, and sometimes arbitration.
Document Vault(Vault, Doc Vault)
The document management feature within Co-ownerOS™ — providing multiplayer storage, authentication, version control, and blockchain-anchored verification for co-ownership records.
Co-ownerOS™Annual PassProperty Events CalendarCo-ownership Agreement
Down Payment(Down payment contribution, Upfront payment)
The down payment is the upfront cash portion of a home's purchase price not covered by the mortgage. In co-buying, how co-buyers split it affects ownership percentage and equity allocation.
Due on Sale Clause(Acceleration clause, Due-on-sale provision)
A due on sale clause allows a lender to demand full loan repayment if property ownership is transferred without the lender's consent.
E
Earnest Money(Good-faith deposit, Earnest money deposit, EMD)
Earnest money is a deposit submitted with a purchase offer to demonstrate buyer commitment. Co-buyers must decide who funds it, how it's credited, and what happens if the deal falls through.
Eligibility(Co-buying eligibility, Group eligibility)
In the CoBuy framework, eligibility is a group-level financial feasibility classification that assesses whether a co-buyer group can realistically finance its stated plan.
Equity(Home equity, Property equity)
Equity is the difference between a property's market value and what is owed on it. In co-ownership, each co-owner's equity is calculated based on their ownership percentage.
Escrow(Escrow account, Escrow process, Impound account)
Escrow is a neutral third-party arrangement that holds funds or documents until contractual conditions are met. In co-buying, escrow manages funds from multiple parties during the transaction.
Estate Planning(Estate plan, Succession planning)
Estate planning is the process of arranging for the transfer of assets after death. For co-owners, it determines what happens to their ownership share and who inherits it.
ProbateJoint Tenancy with Right of SurvivorshipTenants in CommonCo-ownership Agreement
Exit Strategy(Exit plan, Exit terms)
An exit strategy is the predefined plan in a Co-ownership Agreement that governs how a co-owner can leave the arrangement through buyout, sale, or refinancing.
F
First-time Home Buyer(First-time buyer, FTHB)
A first-time home buyer is commonly defined as someone who has not owned a home in the past three years. Each co-buyer's status is evaluated individually and may unlock different program benefits.
A forced sale is a contractual mechanism in a Co-ownership Agreement that requires the sale of a co-owned property when predefined conditions are triggered.
Fully Underwritten Approval(Underwriter approval, Conditional approval)
A fully underwritten approval means a lender has completed full verification of borrower finances and the property. It is the strongest form of mortgage approval before closing.
G
Gift Letter(Gift of equity letter, Gift fund letter)
A gift letter is a signed document confirming that funds contributed toward a home purchase are a gift, not a loan. Gift letters may be needed when family members help fund the down payment.
Down PaymentCash to CloseCapital ContributionsFirst-time Home Buyer
Governance is the structured framework for decision-making, responsibility management, and operations over the life of a co-ownership arrangement.
Co-ownership AgreementExit StrategyShared ExpensesDispute Resolution
I
Investment Property(Rental property, Income property)
An investment property is real estate purchased primarily to generate income or build wealth rather than as a primary residence. In co-ownership, property classification directly affects loan terms.
J
Joint and Several Liability(Joint liability, Several liability)
Joint and several liability means each co-borrower is personally responsible for the full mortgage balance — not just their share. The lender can pursue any signer for the entire debt.
Joint Mortgage(Joint home loan, Shared mortgage)
A joint mortgage is a home loan with two or more borrowers who share responsibility for repayment. All co-borrowers assume full liability for the debt.
Co-borrowerJoint and Several LiabilityRefinancingPre-approval
Joint Tenancy with Right of Survivorship(JTWROS, Joint tenancy)
Joint tenancy with right of survivorship is a co-ownership structure where all owners hold equal shares. When one owner dies, their share transfers automatically to the surviving owners.
L
LLC(Limited liability company)
An LLC is a legal entity that can hold title to property. It offers liability protection but is generally incompatible with conventional residential mortgage financing for primary residences.
M
A Memorandum of Agreement is a recorded document that puts third parties on notice that a Co-ownership Agreement exists, without disclosing its full terms.
Multi-generational Household(Multi-gen household)
A household where two or more adult generations live together — often requiring distinct legal, financing, and governance structures when co-owning the home.
N
Non-occupant(Non-occupant co-borrower, Non-occupying co-owner)
A non-occupant is a co-owner or co-borrower who does not live in the property as their primary residence. Non-occupant status affects mortgage terms, interest rates, and down payment requirements.
O
Occupant(Owner-occupant, Occupying co-owner)
An occupant is a co-owner or co-borrower who lives in the co-owned property as their primary residence. Occupancy status affects mortgage eligibility, loan terms, and expense allocation.
Ownership Share(Ownership interest, Ownership percentage, Percentage interest)
An ownership share is a co-owner's percentage interest in a property as recorded on the deed. It determines equity allocation, sale proceeds, and governance rights.
P
Participation defines each party’s role in a co-ownership arrangement — who holds title, who is on the mortgage, who occupies the property, and what each contributes.
GovernanceOwnership ShareShared ExpensesCapital Contributions
Partition Action(Partition)
A partition action is a court proceeding where a co-owner petitions to divide or force the sale of jointly owned property. It is costly, adversarial, and typically avoidable with proper governance.
Pre-approval(Mortgage pre-approval, Pre-approval letter)
A pre-approval is a lender's preliminary assessment that a borrower is likely to qualify for a mortgage. For co-buyers, each co-borrower's finances are reviewed but full verification occurs later.
Pre-qualificationFully Underwritten ApprovalJoint MortgageCo-borrower
Pre-qualification(Mortgage pre-qualification, Pre-qual)
Pre-qualification is an informal lender estimate of how much a borrower might qualify for, based on self-reported information. It is less rigorous than a pre-approval and carries less weight.
Pre-approvalFully Underwritten ApprovalEligibilityJoint Mortgage
Primary Residence(Principal residence, Owner-occupied home)
A primary residence is the home where the owner lives most of the time. In co-buying, at least one co-borrower must typically occupy the property to qualify for primary residence loan terms.
Investment PropertyOccupantFirst-time Home BuyerNon-occupant
Probate(Probate court, Probate process)
Probate is the court-supervised process of administering a deceased person's estate. For co-owners, it determines how a deceased co-owner's share is transferred.
Estate PlanningJoint Tenancy with Right of SurvivorshipTenants in CommonCo-ownership Agreement
Promissory Note(Note, Mortgage note)
A promissory note is a legal document in which a borrower commits to repay a loan under specified terms. In co-ownership, all co-borrowers are typically bound by its terms.
Joint and Several LiabilityCo-borrowerJoint MortgageDue on Sale Clause
Property Events Calendar(Events Calendar, PEC)
The shared calendar within Co-ownerOS™ for tracking payments, renewals, servicing, governance actions, and milestones — with smart reminders and phase-aware filtering.
R
Refinancing(Refinance, Refi)
Refinancing replaces an existing mortgage with a new one. In co-ownership, it is typically required when a co-owner exits and must be removed from the loan.
Right of First Refusal(ROFR)
A right of first refusal gives remaining co-owners the first opportunity to purchase a departing co-owner's share before it can be sold to an outside party.
S
Shared Expenses(Common expenses, Shared costs)
Shared expenses are the ongoing costs of co-owned property—mortgage, taxes, insurance, maintenance—that co-owners split according to terms in their Co-ownership Agreement.
GovernanceCapital ContributionsParticipationCo-ownership Agreement
T
Tenants in Common(TIC, Tenancy in Common)
Tenants in Common (TIC) is a title structure where two or more people hold distinct ownership shares in the same property. Shares can be unequal and are independently transferable.
Joint Tenancy with Right of SurvivorshipOwnership ShareVestingTitle
Title(Property title)
Title is the legal right to ownership of real property. In co-ownership, title defines who owns the property, in what shares, and under what vesting structure.
DeedVestingTenants in CommonJoint Tenancy with Right of Survivorship
V
Vesting(Title vesting)
Vesting is the legal method by which title to real property is held. It determines each co-owner's rights, survivorship status, and ability to transfer their share.
TitleTenants in CommonJoint Tenancy with Right of SurvivorshipDeed
Viability(Group viability, Alignment readiness)
In the CoBuy framework, viability is an alignment readiness classification evaluating whether a co-buyer group can reach and sustain consensus on core co-ownership decisions.
EligibilityCoBuy WizardCoBuy Decision Brief™Co-ownership Risk Calculator
See if you're ready to co-buy
CoBuy Wizard checks your group's alignment before money is on the line.