In developing a Draftdocs Co-Ownership Agreement it must be borne in mind that a lender might structure the loan so that each borrower can have a separate loan account, the lender might also require that the borrowers each sign guarantees. This means that they will be jointly liable for each other's obligations under the loan agreement.

Under the Draftdocs Co-Ownership Agreement, there are cross guarantees to ensure that if a co-owner does default, and the other co-owners are able to cover the shortfall, there is a right of recovery from the defaulting co-owner. If the co-owners are not able to cover the shortfall the lender may sell the property to recover its loss. The co-owners will still be responsible for any deficit.

It is recommended however that co-owners should also take out mortgage protection insurance to help protect them from losing a home when someone defaults in circumstances covered by the insurance policy.