Joint property purchases between friends or siblings are becoming more common, particularly as affordability pressures increase, but they introduce additional complexity.
According to Antonie Goosen, principal and founder of Meridian Realty, these arrangements require careful planning and clear agreements from the outset.
“A joint bond can make property ownership more accessible, but it also creates shared responsibility,” says Goosen. “Each party is jointly and severally liable for the full bond amount.” He explains that this means risk is shared. “If one party cannot meet their obligations, the other is legally responsible for the full repayment,” he says.
Goosen strongly advises formal agreements. “A co ownership agreement should outline contributions, usage, exit strategies, and dispute resolution mechanisms,” he says. “This reduces ambiguity and protects all parties.”
Legal guidance is essential.
“These agreements should be drafted with professional input to ensure they are enforceable,” says Goosen.
He also highlights the importance of alignment. “All parties need to have a shared understanding of the purpose of the property, whether it is for personal use or investment,” he says.
Exit strategies are particularly important. “Circumstances change,” says Goosen. “There must be a clear plan for what happens if one party wants to sell or cannot continue contributing.”
Financial planning also plays a role.
“Affordability should be assessed conservatively,” he says. “It is important to plan for potential changes in income or expenses. Ultimately, transparency is key. When expectations are clear from the beginning, joint ownership can be a successful strategy,” he says. “Without that clarity, it can quickly become complicated," says Goosen.
Below, attorneys from Abrahams & Gross and Herold Gie Attorneys explain the legal pathways available.
1. Removing your name from a joint bond with a partner
Abrahams & Gross Attorneys insights agents can share with their clients:
To remove your name from a mortgage bond, you must either:
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Cancel the existing bond, or
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Apply for a substitution of debtor, meaning your partner becomes the sole debtor.
In both cases, you must also transfer your undivided half-share of the property into your partner’s name. This requires a formal transfer process and attorney involvement. If your partner is “buying you out,” an Offer to Purchase must be signed. If not, a different agreement may be necessary depending on the circumstances.
Cancelling the bond
You must give your bank 90 days’ notice to avoid penalty fees.
The bank then instructs attorneys to cancel the bond at the Deeds Office.
The bank will issue cancellation figures, which must be settled via a guarantee provided by attorneys.
Substitution of debtor
If you cannot settle the bond upfront, your partner may apply for substitution.
The bank will conduct a credit assessment to ensure affordability.
Attorney fees apply for both cancellation and substitution.
Transfer of property
You cannot be released from the bond until you're removed from the Title Deed.
This requires a formal transfer by a transferring attorney, including:
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Attorney fees
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Rates Clearance Certificate
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HOA consent (if applicable)
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Potential transfer duty, depending on property value
2. Terminating a joint bond after divorce
A second Property24 reader wants to sell her home, but her ex-husband - co-owner - has moved overseas and is unreachable.
Herold Gie Attorneys, explain the options:
Scenario 1: Ex-spouse is reachable and cooperative
If both parties remain co-owners, the ex-spouse can:
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Co-sign the sale agreement from abroad
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Email it back
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Issue a Special Power of Attorney allowing someone else to sign transfer documents
If signed overseas, the Power of Attorney must be completed at a SA Embassy or by a Notary and authenticated (Apostille) to satisfy Deeds Office requirements.
Scenario 2: Ex-Spouse Is Unreachable or Uncooperative
If the divorce order did not address the property, you may need to:
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Apply to court to terminate joint ownership
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Request an order allowing the sale
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Ask for permission for the Sheriff of the Court to sign documents if the ex refuses
If the divorce order requires the house to be sold, you must follow the terms of the order — including any clause allowing the Sheriff to sign.
If the divorce order awarded the property fully to one spouse, that share must be transferred before or during the sale. If the ex-husband is unresponsive, the same court processes apply.
Joint property ownership can become complicated when relationships or circumstances change.
A joint bond can be ended by:
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Cancelling the bond entirely, or
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Substituting one owner as the sole debtor, subject to bank approval.
Where a co-owner is overseas or unresponsive, court intervention may be required to proceed with a sale or transfer.
READ: How to create a strong joint bond application
Morné Prinsloo, local agent with REMAX Town and Country Roodepoort and Krugersdorp, says joint bond applications between friends and siblings are more common than most people expect. According to most bond originators, approximately 24.7 percent of joint bond applications in South Africa are made by people who are not spouses, which includes family members, friends, and business partners. Getting into the property market together can make financial sense. But the legal and financial risks are real, and most people who come to me excited about the idea have not thought them through properly. "Part of my job is to make sure they do".
What a joint bond actually means in law
When two or more people apply for a home loan together in South Africa, the bank requires them to be jointly and severally liable for the full debt. This is not a shared responsibility in the way most people imagine it. It means the bank can pursue either party for the entire outstanding amount, regardless of any private arrangement between them about who pays what.
If a sibling loses their job and misses three bond payments, the bank does not wait to resolve that between the parties. It will pursue both names on the bond. Both credit records are affected. The remaining party is liable for the full instalment, not just their half. This is the single most important thing I explain to people considering a joint bond with someone who is not their spouse.
Agent role
"My role in a joint bond application is to facilitate the purchase, not to provide legal advice. But I do make sure that both parties are referred to a bond originator who can assess their combined and individual financial profiles properly, that the strongest financial profile is positioned as the primary applicant to give the application the best chance of success, and that both parties have been strongly encouraged to get a co-ownership agreement in place before transfer.
"I also make sure that both names are correctly captured on the title deed from the start and that the split of ownership reflects what was agreed between the parties. These details matter more than most buyers realise at the time of signing, and correcting them later is expensive and time-consuming. Joint bonds between friends and siblings can work well. They require more preparation, more honest conversation, and more professional legal support than most buyers expect going in. My job is to make sure they go in with their eyes open," he says.
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