In 2025, more people than ever are buying property together — friends, family members, business partners, and even strangers. Rising prices, shifting interest rates, and evolving investment strategies are making joint ownership an appealing option for many.

But while partnerships can increase buying power, they also come with risks that many people overlook until it's too late. Whether you're co-purchasing a home, investing in rental property, or sharing family land, how your partnership is structured and managed legally can make or break your success.

This month, we’re covering the legal must-knows of real estate partnerships:

• Why More People Are Buying Property Together in 2025

• Choosing the Right Type of Ownership Structure

• What to Include in a Legally Sound Partnership Agreement

• What to Do When a Partner Wants Out — or Stops Paying

• How Moye Helps Protect Partners at Every Stage

Why More People Are Buying Property Together in 2025

Housing prices and interest rates are still high, and the barrier to entry for single buyers or new investors can feel overwhelming. As a result, we’re seeing a significant increase in:

• Friends pooling resources to buy their first home together — splitting the down payment, mortgage, and utilities.

• Adult siblings co-owning inherited property, like farmland or a family home, rather than selling it off.

• Entrepreneurs partnering to buy commercial property for income or resale value.

• Investors forming informal groups to flip homes or build rental portfolios without setting up a business entity.

These arrangements offer flexibility — but without clear legal structures, they also open the door to conflicts over money, repairs, refinancing, or even who can live in the property.

Choosing the Right Type of Ownership Structure

Not all partnerships are the same — and the wrong ownership type can cause serious tax, inheritance, or legal issues later. At Moye, we help clients understand the four most common structures:

• Joint Tenancy with Right of Survivorship (JTWROS):
  Each person owns an equal share, and if one dies, their share automatically goes to the others. It’s simple but inflexible — and not ideal for people who want to leave their share to a spouse or child instead.

• Tenancy in Common (TIC):
  Allows unequal shares (like 70/30 ownership) and each person can leave their share to a chosen heir. It's more customizable but can get messy if there’s no agreement about selling, renting, or making major decisions.

• Limited Liability Company (LLC):
  Offers the most protection for investment properties. The LLC owns the property, and partners are members. You can create an operating agreement to define rules, profit sharing, and exit plans. Bonus: potential tax advantages and liability shields.

• Traditional Partnership Agreements:
  For business use, development, or rental income, this route allows clear definitions of duties, voting power, and revenue splits. You’re not relying on title type alone — you have a full legal framework.

Each has pros and cons, depending on your goals. We’ll help you weigh what fits your situation best.

What to Include in a Legally Sound Partnership Agreement

The biggest mistake we see? People skip the agreement. Or worse — they draft something from the internet and assume it's enough. A thorough partnership agreement protects your investment, your relationships, and your future plans.

Here’s what every agreement should cover:

• Ownership Shares and Contributions:
  Who owns how much? Who paid what? If one person provided the down payment and another manages repairs, how is that reflected legally?

• Who Makes Decisions (and How):
  Can one person make decisions about tenants, renovations, or refinancing? Do all partners need to agree? Are there voting rules based on ownership percentages?

• Dispute Resolution Plan:
  If there's a disagreement, do you go to court, arbitration, or mediation? Decide this in advance — not in the middle of a heated argument.

• Exit Strategy:
  What happens if someone dies, divorces, or just wants out? Can they sell their share? Are others given first right of refusal? Without this clause, a partner could sell to someone you don’t know.

• Profit and Expense Sharing:
  How will rental income be split? Who pays for taxes, insurance, or surprise repairs? What happens if one partner stops contributing?

• Usage Agreements:
  For vacation homes or land, who can use the property and when? Will there be a rotation? What happens if someone wants to rent out their time?

At Moye, we customize these agreements to reflect your real-world dynamics — not just boilerplate language.

What to Do When a Partner Wants Out — or Stops Paying

Even strong partnerships can hit bumps. Maybe a co-owner is going through financial hardship and stops contributing. Maybe someone wants to move and liquidate their share. Here’s what to do:

• Start with your agreement (if you have one).
  It should outline how ownership changes are handled, how a partner can exit, and what happens if someone defaults on payments.

• Use a buyout clause or sale procedure.
  Define how the exiting partner’s share will be valued — using appraisal, a set formula, or a third-party valuation. Decide how much time others have to buy the share.

• If no agreement exists:
  You may need to negotiate informally — or turn to mediation. If all else fails, a partition action (a court-ordered sale or division of property) may be required — a costly, time-consuming process.

• Protect against default.
  For future partnerships, Moye can include “default provisions” that define penalties or remedies if someone stops paying their share.

We’ve helped dozens of clients unwind or fix partnerships cleanly — avoiding court where possible and preserving relationships along the way.

How Moye Helps Protect Partners at Every Stage

Whether you’re just starting a new investment, managing inherited property with siblings, or navigating a falling-out with a partner, Moye Law Firm provides legal guidance tailored to every phase:

✅ Drafting and reviewing partnership agreements
✅ LLC formation and legal structure recommendations
✅ Dispute mediation and exit strategy planning
✅ Property buyout documentation and negotiation
✅ Protecting your interest if things go wrong