Before they agreed to buy a house together, the couple discussed at length the possible outcomes, as on the subject, when one of them could lose his job and not contribute to mortgage payments, or if they dissolve. They finally decided that if their relationship ended, they would both move and keep the property as an investment, with a real estate manager cleaning up every day. Michael Yardney, founder and CEO of Metropole Property Strategists, said Savings.com.au he recently saw an increase in the number of people who bought investment properties with friends. Consider hiring a lawyer to draft an agreement that defines each person`s responsibility, what happens if one of you leaves and how the property is treated if one of you dies. Such a loan could offer the advantage of maintaining your own financial independence and control of your part of the property, instead of having to interweaving your finances with your friend or family member. With joint loans: “If they start mixing up funds and sharing assets, then the court can see them as a common partnership and ignore the co-ownership agreement,” she said. At that time, all equity in the property could potentially be treated as a common good and distributed equitably, regardless of one of them. Your financial broker can refer you to an intermediary lawyer experienced in working on condominium contracts, who can advise and create yours and ensure that it is able to provide all parties involved with the necessary legal protection. Ms.
Elkins pointed out that unmarried buyers often think that everything they enter into their condominium contract is legally valid without really reviewing the laws in their state. Ms. Elkins cited the example of a couple for whom she recently developed an agreement. In this scenario, one woman paid for the house and the other woman wanted to pay it back. Ms. Elkins warned that, although her co-ownership agreement provided that if dissolved, the funds should be distributed on the basis of what they contributed to the property, the Oregon court might see things differently. If you choose to follow the path of buying a property – investment or otherwise – with a trusted friend or family member, this may be a legitimate strategy to do so, but it is not without its risks. It is essential that both parties are 100% clear about their long-term aspirations and fully agree with the choice of ownership. They don`t want to end up in a situation where one of them wants to sell their part of the property and move in a year later with their annoying new friend/friend. Make sure you`re both on the same side.
There are many other considerations when jointly buying real estate, so talk to an expert early to make sure you do it the right way. “What people need to know is that even if you own a property as a “common tenant” unless you agree to something else, you are entitled to the occupancy of the entire property. Therefore, if one owner transfers or sells his share, the other person can eventually live with someone they would not otherwise choose and perhaps in the property,” Reid said.