Co-Owning Property with Family: Agreements That Prevent Wahala

TL;DR: Family property co-ownership works in Lagos when the handshake becomes a document: who owns what share, who can trigger a sale, who pays for what, and what happens when someone dies or wants out. Most family property wahala I see did not start with greed — it started with love, memory and no paperwork.

The story that repeats itself

Four siblings inherit their late father's house in Surulere — or buy a plot together in Ikorodu in better times. Everyone is happy. Ten years later: one sibling lives abroad and wants his share in dollars; one lives in the house rent-free; one quietly collected rent from the boys' quarters for six years; a nephew has "almost finished" building on the family plot in Ibeju-Lekki. Nobody is a villain. There is just no document that answers the questions money eventually asks.

The fix is boring and total: write it down while everyone still loves each other.

Choose the legal shape first

Joint tenancy — co-owners hold the whole together, and when one dies, their interest passes automatically to the survivors (right of survivorship). Simple, but it means your share never enters your own will or goes to your children directly.

Tenancy in common — each person owns a stated share (50/30/20, or equal quarters) that can be sold, gifted or willed separately. For family investment property, this is usually the honest structure, because contributions are rarely equal.

Family trust — property held by trustees for defined beneficiaries under a trust deed. More setup, but it survives individual deaths cleanly and can lock in rules for minors. Worth it for larger assets.

Whichever shape, the names and shares go into the deed and through Governor's Consent and registration like any other Lagos transaction. A co-ownership that exists only in family meetings does not exist against a buyer, a bank or a court.

The agreement clauses that prevent wahala

A proper co-ownership agreement — drafted by a lawyer, signed by every co-owner — should cover:

1. Shares and contributions. Exact percentages, matched to who paid what for purchase, perfection and building. Attach evidence.
2. Decision rules. What needs unanimity (selling, mortgaging, major building) versus majority (routine repairs, choosing an agent). Silence here is how one sibling "approves" a sale alone.
3. Money in. Who pays Land Use Charge, service charge, insurance and repairs — and what happens when someone defaults (their share bears a charge; the others can cover and deduct).
4. Money out. How rent is collected, into which account, and how it is shared and reported. One bank account, statements visible to all.
5. Use rights. Who may live in the property, at what rent or none, and for how long. Rent-free occupation should be treated as a benefit valued against that person's share of income.
6. Exit. First refusal: a selling co-owner offers their share to the others first, at a value set by an agreed formula or an independent valuer. Define the timeline so "family first" does not become a forever veto.
7. Death and succession. Each co-owner's will should name what happens to their share (in tenancy in common). No wills, and you have scheduled the next generation's dispute.
8. Dispute ladder. Family meeting, mediation (Lagos has the Citizens' Mediation Centre and the Multi-Door Courthouse), then arbitration or court. Write the ladder before you need it.

Special Lagos warnings

• Family land is different from co-owned purchased property. If the asset is ancestral family property, sales and allocations follow customary rules — the family head and principal members must be involved, and one member's solo sale can be voided. Keep the two categories separate in your head and in your documents.
• Register everything. Deeds, the co-ownership agreement (keep originals safe; consider depositing copies with the family lawyer), and every party's will.
• The diaspora clause. Where some co-owners live abroad, name a resident representative with limited, written powers — a general power of attorney handed out at the airport is how shares evaporate.

Frequently asked questions

What is the difference between joint tenancy and tenancy in common?

Joint tenants own the whole together and the survivor automatically takes all on a death. Tenants in common own separate stated shares they can sell or will to their own beneficiaries. Family investments usually fit tenancy in common better.

Can one family member sell a co-owned property alone?

If the title is properly documented, one co-owner can only sell their own share (in tenancy in common), not the whole property — and a good agreement gives the others first refusal. Where documents are loose, solo sales happen and then get fought in court.

Should co-owned family property be put in a trust?

For larger assets or where minors and multiple branches are involved, yes — a trust deed with appointed trustees keeps the property out of individual estates and sets management rules that survive deaths.

What happens to my share when I die?

In a joint tenancy, it passes to the surviving co-owners. In tenancy in common, it falls into your estate — which is why every co-owner needs a will naming their beneficiaries.

How do we decide the value if one person wants to sell out?

Agree the method in advance: an independent registered valuer chosen jointly, or a formula tied to recent comparable sales. Deciding the method while everyone is calm is the whole trick.

Related reading

• Sending Money to Family for Property in Nigeria: Safer Alternatives
• Omo Onile Wahala: How to Deal with Land Grabbers in Lagos
• Buying Property in Lagos from Abroad: The Complete Diaspora Guide
• Best Mainland Areas to Buy Property Under ₦100M