What steps can I take to avoid future disputes between tenants in common?

I am a newly qualified solicitor. My firm is acting for an unmarried couple purchasing a property in their joint names as tenants in common. Is it advisable to specifically agree each party's share in the property to avoid future disputes?

Yes. It is recommended that you carefully explain and document the advice given on your file that:

• holding the property as tenants in common will mean that the property will not automatically go to the surviving owner, and
• the parties can own different shares in the property

This may depend on their contributions towards the purchase price or as agreed.

To avoid future disputes, the share of each owner should be expressly agreed and recorded in a deed of trust that is signed by each owner.

Where the land is registered, a declaration of trust can be made in Panel 10 or Panel 11 of Form TR1 or in Form JO.

In certain circumstances, it would be advisable for the joint owners to receive separate independent legal advice.

An example is when they are making unequal contributions to the purchase price or if there is a suspicion of undue influence by one over the other.

Joint owners may need to be advised separately because of an actual or potential conflict of interest between them or a disagreement on the amount of their respective share.

If the proportions of the beneficial interest are not clearly stated, it may be difficult to determine the ownership of the proceeds of sale when the property is sold.

It should also be explained that each owner can pass their respective share in the property to whomever they want in their will.

For more information, see:

• HM Land Registry’s public guide on joint property ownership
• our joint practice note with HM Land Registry on joint ownership 
• Conveyancing Handbook (31st edition), which is available to purchase from our online bookshop