Buying your First Home – The Bigger Picture
Mary Peters – Solicitor | Sun Oct 11 2026
Buying your First Home – The Bigger Picture
Last month we answered some of the questions we are frequently asked by first-time home buyers. This month we want to put a spotlight on some of the wider property ownership and estate matters you will need to think about when you make your first purchase - Contracting Out Agreements, Property Sharing Agreements and Wills.
Your solicitor will need to know about you, your financial situation and your relationships as part of giving you full and informed advice on your purchase. Sometimes it will quickly become apparent that there is a real need for a Contracting Out Agreement, Property Sharing Agreement or Wills, to ensure that your investment in your property is protected and that the future you envisage can become a reality
Contracting Out Agreements
A Contracting Out Agreement is an agreement between people who are in or are contemplating a relationship. The agreement records what property they own separately, what is relationship property, how that may change over time and what will happen if they separate or one of them passes away. The cost of preparing and signing a Contracting Out Agreement is almost always far less than the cost of resolving a dispute in the future.
When you are at the beginning or in the middle of a happy relationship it is difficult to imagine a time when you could be at odds over who paid for what and whether your home was owned equally or unequally. Sometimes it can help to remember that this argument may not be between you personally – if one or both of you have passed away and your executors are now involved, they have no firsthand knowledge of the conversations you had or your plans for the future. A clear paperwork trail helps them understand what you intended.
A Contracting Out Agreement does not only plan for a possible future where the two of you have fallen out. It is also a way of preserving your voice and plans and intentions, so that everyone involved understands what you wanted to happen. To be effective, each person needs independent legal advice, and the agreement must be properly signed, witnessed and certified.
Property Sharing Agreements
A Property Sharing or Co-Ownership Agreement records the arrangements between people purchasing or owning property together, particularly where they are not relying solely on the relationship-property regime. The parties record their contributions, their obligations and what will happen when the property is sold. Often, we will hear people say that they don’t need a formal agreement, that they have worked it out between themselves, but it is important to remember that you cannot guarantee that relationships stay the same or that no one will pass away, and that human memory is fallible.
Disputes often arise down the line, not because of what was agreed, but because of the things that no one thought to discuss; because people have different memories of a conversation; or because someone can no longer speak for themselves and there is no clear proof of what was agreed. Having your solicitor prepare a Property Sharing Agreement helps avoid grey areas, records what has been agreed and reduces uncertainty
Again, the cost of preparing and signing a Property Sharing Agreement can be far less than the cost of resolving a later dispute.
Wills
Often it is a first home purchase that motivates people to prepare their first Will. Your Will is how you communicate to the people you leave behind what you want to happen to your assets. A Will lets you appoint executors and say how you want assets in your estate distributed. Some property, such as a home held in a continuing joint tenancy, passes by survivorship instead; relationship-property rights and successful estate claims may also affect the outcome. If you die without a valid will, statutory intestacy rules determine who receives the assets in your estate
A lack of clarity or competing legal interests, fuelled by grief, can create disagreement and additional costs that drain your estate. A well-thought-out Will is your best option for giving your wishes the best chance of being carried out with the least complication and cost.
How You Own Your Property Matters
If you buy with someone else, you will need to discuss whether you will own the property as joint tenants or tenants in common. Joint tenants do not hold separately defined shares: if one dies while the joint tenancy remains in place, the surviving owner takes the property by survivorship, rather than the deceased owner’s interest passing under their will. Tenants in common hold defined shares, which can be unequal; each owner’s share can pass under their will or, without one, under intestacy rules.
Summary
Purchasing your first home is a big step forward but it is only one piece of your life plans. We will take the time to get to know you and your plans for the future to make sure you get the advice you need and do what we do best – make the complex simple.
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