What Florida Homeowners Need to Know About Owning Property with Family and Friends

Owning real estate with family members or friends can be a helpful way to pool resources, share costs, and build wealth together in Florida. Whether it's a vacation home on the beach, an investment property in Orlando, or a family residence passed down through generations, co-ownership offers opportunities—but it also comes with significant legal and title implications that Florida homeowners must understand to avoid disputes, financial pitfalls, and unintended consequences. At Munizzi Law Firm, we guide clients through these complexities every day, ensuring that shared ownership starts on solid ground with clear agreements and proper structuring.

In Florida, the way you hold title to property with others determines everything from how you can sell your share, to what happens upon death, to liability exposure. Without careful planning, default state laws kick in, which may not align with your intentions. This article breaks down the key types of co-ownership, the importance of co-ownership agreements, and practical considerations for buying a house with multiple owners. We'll also touch on co-purchaser meanings and how many people can legally own a house in Florida.

Types of Co-Ownership in Florida

Florida recognizes several forms of co-ownership, each with distinct rules governing rights, responsibilities, and inheritance. Choosing the right one depends on your relationship with the co-owners, your goals for the property, and whether you're married. Here's a detailed look at the primary options:

Tenancy in Common

This is the default form of co-ownership in Florida when multiple parties acquire property without specifying otherwise. Under Florida Statutes Chapter 689, tenants in common each hold an undivided interest in the entire property, meaning no one owner has exclusive rights to a specific portion. Key features include:

• Unequal Shares Allowed: Owners can hold different percentages (e.g., 60% for one, 40% for another), based on contributions or agreement.
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• No Survivorship Rights: Upon an owner's death, their share passes to their heris or estate via probate, not automatically to the surviving co-owners. This can lead to unintended co-ownership with strangers if not planned for. ‍
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• Partition Rights: Any owner can force a sale of the property through a partition action in court if disputes arise, potentially disrupting everyone's plans.
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• Liability: Each owner is fully responsible for the property's obligations, like mortgages or taxes, but creditors of one owner can place leins on that owner's share.

Tenancy in common is flexible and common for unrelated friends or business partners investing together.

Joint Tenancy

Joint tenancy requires explicit language in the deed (e.g., "as joint tenants with right of survivorship") and the "four unities": time (acquired at the same time), title (same deed), interest (equal shares), and possession (equal rights to the whole). In Florida:

• Right of Survivorship: The deceased owner's share automatically passes to the surviving joint tenants, bypassing probate.
  

• Equal Shares Only: All owners must have identical interests (e.g., 50/50 for two owners).
  

• Severance Risk: If one owner sells or transfers their share without consent, it converts to tenancy in common, losing survivorship.
  

• Not for Married Couples: This is typically used for non-spouses, as married couples have a superior option (see below).

Joint tenancy provides seamless transfer on death but demands equality and can be fragile if relationships change.

Tenancy by the Entireties

Exclusive to married couples, this form treats the husband and wife as a single legal entity owning the property. Florida strongly protects entireties property:

• Survivorship Automatic: The surviving spouse inherits full ownership without probate.
  

• Creditor Protection: Creditors of only one spouse generally cannot touch the property, as long as it's homestead (your primary residence).
  

• No Partition: Neither spouse can force a sale without the other's consent.
  

• Homestead Benefits: Qualifies for Florida's robust homestead exemptions, including tax caps and asset protection from creditors.
  

This is the safest and most protective for spouses but unavailable to friends, siblings, or unmarried partners.

Co-Ownership Agreements

Even with the right title form, a written co-ownership agreement is crucial. While not required by law, relying on verbal understandings or default laws invites disaster. Therefore, it is paramount to use a comprehensive agreement, drafted by an experienced attorney, which covers:

• Contributions and Expenses: Who pays what for down payments, mortgages, taxes, insurance, maintenance, and repairs? Include reimbursement mechanisms for unequal contributions.
  

• Use and Occupancy: Schedules for personal use (e.g., vacation homes), rental income division, and rules for guests or subletting.
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• Management and Decision-Making: Voting rights for major decisions like selling, refinancing, or improvements. Require supermajority or unanimous consent for big moves.
  

• Exit Strategies: Buy-sell provisions, right of first refusal if one owner wants to sell, and valuation methods (appraisals to avoid lowball offers).
  

• Dispute Resolution: Mediation or arbitration clauses to keep conflicts out of court.
  

• Death or Divorce: What happens if an owner dies, divorces, or becomes incapacitated? Tie into wills or trusts.
  

• Termination: How to dissolve the ownership, including partition alternatives like mediated buyouts.

Without this, Florida's default rules apply—for tenancy in common, equal management but potential forced sales; for joint tenancy, survivorship but no expense guidelines. We've seen families torn apart over unequal repair costs or one heir demanding a sale. A tailored agreement prevents this and can even include LLC structuring for added protection (more on that in related articles).

Buying a House with Multiple Owners

The process mirrors solo buying but amplifies risks:

1. Prequalification: All buyers get lender approval; joint credit impacts everyone.
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2. Title Selection: Specify on the purchase agreement and deed—don't leave it to closing.
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3. Financing: Co-borrowers are jointly liable; consider one primary borrower with others on title only.
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4. Closing: All sign documents; review Settlement Statement or Closing Disclosure for prorated costs.

FAQ's About Joint Ownership in Florida

Co-Purchaser Meaning

A co-purchaser is anyone jointly buying and taking title, sharing ownership rights and obligations from day one.

How Many People Can Own a House?

Florida has no statutory limit—deeds can list dozens, though lenders may cap at 4-10 for mortgages due to underwriting. Of course, more owners mean more complexity, so we recommend no more than 4-5 individuals—after which point, an LLC becomes the preferred ownership vehicle.

Shared ownership requires detailed planning to avoid disputes and division. Consult Munizzi Law Firm early on to draft agreements that protect relationships and investments. 

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