Partnership Law Act 2019

Nature of partnership - Determining whether partnership exists

12: Co-ownership of property

You could also call this:

"Property shared with others doesn't always mean you're business partners"

When you own property together with other people, it doesn't automatically mean you're in a business partnership. This is true even if you make money from using the property together.

For example, if you and your friend own a house together, that doesn't mean you're business partners just because you own the house. It doesn't matter if you're "joint tenants", "tenants in common", or any other type of co-owners. You're just people who own a property together.

This rule applies even if you and the other owners share any profits you make from the property. So, if you rent out the house and split the money, you're still not automatically business partners.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS205992.


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11: Determining whether partnership exists, or

"How to tell if people are working as partners"


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13: Sharing gross returns, or

"Splitting money or stuff you earn doesn't always mean you're partners"

Part 2Nature of partnership
Determining whether partnership exists

12Co-ownership of property

  1. If 2 or more persons own or hold property as joint tenants, tenants in common, or joint or part owners, the ownership or holding of the property does not by itself create a partnership in relation to the property.

  2. This section applies whether or not the tenants or owners share any profits made by the use of the property.

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