Co-owner

What It Means

A co-owner is an individual who holds Title to a residential property jointly with one or more other parties, where at least two parties are not married to each other. Co-ownership begins at closing, when the group transitions from Co-buyers to co-owners.

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Co-owner status is determined by title, not by the mortgage. A person can be on the mortgage without being on title (as a Co-signer), or on title without being on the mortgage (as a non-borrowing co-owner). The distinction between asset-side roles (title) and liability-side roles (mortgage) is central to understanding what co-ownership means in practice.

How Title Defines Co-ownership

Co-owners hold title under a specific legal form. The most common forms for co-owners who are not married to one another are Tenants in Common (TIC) and Joint Tenancy with Right of Survivorship (JTWROS). The choice of title form determines how Ownership Shares are allocated, whether interests can be transferred independently, and what happens to a co-owner’s share upon death.

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In states with Community Property laws, a married couple within a co-ownership group may hold their combined share as community property, while non-married co-owners hold under TIC or JTWROS. These structures can coexist within the same arrangement.

Obligations of Co-owners

Co-owners share ongoing financial obligations including mortgage payments, property taxes, insurance, and maintenance. How these Shared Expenses are allocated among co-owners should be documented in the Co-ownership Agreement, not assumed based on Ownership Shares or occupancy status.

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Because most residential mortgages impose Joint and Several Liability, each co-owner on the loan is individually liable for the full mortgage balance — not just their proportional share. If one co-owner stops paying, the others must cover the shortfall or risk default. This creates financial exposure that is independent of ownership percentage or internal cost-sharing agreements.

Why Governance Matters

Co-ownership is not a static state. Co-owners must make decisions together over time — about maintenance, improvements, refinancing, occupancy changes, and eventual exit. Without structured Governance, these decisions default to informal negotiation, which becomes increasingly difficult as circumstances change or disagreements arise.

Key Points

• An individual who holds title to a residential property jointly with one or more other non-married parties after closing
• Determined by title, not by the mortgage — a person can be on the loan without being a co-owner, or vice versa
• Title form (TIC, JTWROS, or community property) determines how ownership shares work and what happens upon death or transfer
• Co-owners share ongoing obligations including mortgage, taxes, insurance, and maintenance under Joint and Several Liability
• How shared expenses are allocated should be documented in the Co-ownership Agreement
• Structured Governance is required to manage decisions, responsibilities, and disputes over the life of the arrangement