Property co-ownership happens when two or more people jointly purchase real estate, each holding legal rights to the property. This approach appeals to families, friends, and couples looking to make homeownership more affordable. In a market like Las Vegas, where prices are high and inventory is tight, combining resources can seem like the only viable path to owning a home. But without proper planning, co-ownership can quickly lead to legal and financial trouble.

Las Vegas buyers face increasing pressure from rising home prices and corporate investors purchasing thousands of single-family homes in the Valley. As a result, more locals are exploring co-ownership as a workaround to traditional barriers. While it may offer short-term affordability, the long-term risks often go overlooked. Adding someone to a title is a breeze. The challenge lies in removing them, or dealing with the complications from a fallout.

Problems often arise when life circumstances change, such as a co-owner passing away, getting divorced, or facing a lawsuit. Without a legal agreement in place, decisions about selling, refinancing, or renting can stall or spiral into conflict. Missed payments, disagreements over maintenance, or shifts in personal goals can strain even strong relationships. These issues aren’t rare; they’re common and can lead to court involvement or financial loss.

Co-ownership can also trigger unexpected tax issues, especially when gifting a portion of property to someone other than a spouse. More owners means more exposure to creditors and less individual control over decisions. If one co-owner wants out and the others don’t agree, the only way forward may be legal action. Many people enter co-ownership for convenience, only to discover it comes with long-term costs.

For those set on co-owning, there are safer alternatives. Using a revocable living trust can help avoid probate while preserving control of the property. Forming an LLC or crafting a co-ownership agreement can clarify roles, financial responsibilities, and exit strategies. With the right legal structure, you can reduce risk and still benefit from shared ownership.

If you’re considering co-ownership in the Las Vegas area or already own property with others, it’s smart to consult a local expert. Dulcie Crawford offers guidance on real estate strategies, including how to protect your property and avoid common pitfalls. Her experience can help you make informed decisions tailored to your unique situation. A bit of planning today can prevent major problems tomorrow.

Dulcie Crawford is a native Nevadan, born and raised in Las Vegas. Dulcie is a Community Expert & stays current with updates on market trends & market conditions.  A senior Realtor with Signature Real Estate Group, she has sold over 1,300 homes since 1998. You are assured an exceptional experience when buying or selling Real Estate with The Dulcie Crawford Group.