More and more siblings are becoming co-buyers.
A Bank of America Institute survey found that 22% of Gen Z homeowners bought their home with siblings, up from 12% in 2024 and 4% in 2023.
The latest Profile of Home Buyers and Sellers report by the National Association of Realtors® also reveals that multigenerational dwellings made up 17% of home purchases last year, up from 14% the year before—which represents an all-time high.
A mix of challenges—like rising rents, student loan burdens, affordability issues, and the pursuit of long-term financial stability—is pushing more people to live with family. For many, it’s a practical and strategic choice.
Know your legal rights when buying a home as co-owners
It's important to know your legal rights when buying a home with a sibling.
"Two primary forms of title are available to sibling co-buyers: joint tenancy with right of survivorship and tenancy in common," says attorney Chad D. Cummings, of Cummings & Cummings Law in Florida and Texas.
Under joint tenancy with right of survivorship, Cummings says each sibling owns an equal and undivided interest in the entire property, and upon the death of one sibling, their interest automatically transfers to the surviving sibling.
"In contrast, under tenancy in common, each sibling holds a divisible interest—often proportional to contribution—and may transfer or devise their share independently," explains Cummings.
For instance, if one sibling puts in 70% of the down payment and continuing costs, "it would make sense for them to own 70% of the property," says Bill London, partner at Kimura London & White LLP in Irvine, CA. "With tenancy in common, these percentages of ownership should be clearly defined within the deed and accompanying contracts."
If one sibling under a tenancy in common dies, their share passes to their heirs or beneficiaries, not the co-owner.
Decide how you’ll split ownership and costs
According to Cummings, most sibling co-buyers will default to tenancy in common, particularly when contributions to the purchase price or ongoing expenses are unequal or when each co-owner wishes to preserve testamentary control over their share.
"Title should be recorded accordingly, explicitly stating the nature of the tenancy and each sibling’s percentage interest, which can reflect financial contributions to the down payment, mortgage, or improvements," says Cummings.
A formal co-ownership agreement—a legally binding contract—should be executed contemporaneously with the purchase.
"This agreement should address ownership percentages, expense obligations, occupancy rights, dispute resolution mechanisms, and terms governing sale, buyout, or refinancing," says Cummings.
To keep the peace, it's important that siblings agree on big expenses—such as renovations, taxes, and emergency repairs—before they arise.
Have an exit strategy if one sibling wants out
If one sibling wants out of the arrangement but the other one doesn't, they can “buy out” their co-owner.
"A buyout typically involves one sibling taking out a new mortgage in their name to pay off the other sibling's equity, or making a one-time payment that corresponds to an agreed-upon valuation of the property," says London. "This process should be clearly outlined in the co-ownership agreement and done in consultation with a real estate lawyer to enable a smooth transfer of title."
But what happens if the siblings disagree on selling?
"Where one sibling wants to sell and the other does not, and where there is no agreement between them, one can file a partition action with the court to force the sale or division of the property," says London. "Mediation is usually suggested as a first step, where an impartial third party helps the siblings reach a compromise."
Refinancing can also be an option if one sibling wants to stay in the home solo.
"The sibling who will stay in the property can try to refinance the home in their name only, using the new mortgage to pay off the departing sibling for their share," says London. "The departing sibling would then sign a quitclaim deed to give up their interest in the title. Lenders will require proof of income and creditworthiness to guarantee that the staying sibling qualifies on their own."
Treat it like a business partnership, not just family
Even though siblings are obviously family, it's important to treat property co-ownership as a business arrangement.
"Co-ownership of residential real estate among family members should be approached with the same rigor as a business venture," says Cummings. "Treating the arrangement as a de facto business partnership—including clear delineation of duties, rights, risks, and benefits—is essential."
It's advisable to create a formal co-ownership agreement outlining things like how the bills will be divided; who's responsible for maintenance; what happens if one sibling loses income or wants to move; and how profits or losses will be split if the house is sold.
"Without a doubt, a co-ownership agreement is crucial," says London. "It establishes who will oversee the property, how expenses will be split, what procedures to follow if a brother or sister decides to sell, and how to settle disagreements. These agreements act as a legally binding contract and help avoid miscommunication—specifically with emotional or family issues. Without it, parties have to rely on informal verbal understandings, which are difficult to enforce and are often forgotten over time."
In some cases, forming a limited liability company (LLC) taxed as a partnership can provide additional legal protections, simplify buy-sell mechanisms, and insulate personal assets from property-related liabilities.
Establishing a revocable trust might also be advisable, particularly where intergenerational transfer planning is a goal.
No matter what, clear documentation is important, even in family environments.
"Clearly stated agreements play an important part in maintaining interpersonal relationships," says London. "They avoid potential misunderstanding, discourage resentment, and provide legal recourse in case of a disagreement. In real estate—usually a person's biggest asset—insisting on clarity about ownership, responsibility, and divestiture alternatives is critical."
Read more at Realtor.com
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