When you close on a house, there are a slew of legal documents that need to be signed and presented. One of those documents, however, is not a marriage certificate. The person you purchase a house with could be a future spouse, cousin, or best friend. Hundreds of thousands of people every year by a home with a person that they are not married to.
But what does it take to make a move like this a successful one?
Suggestions For a Successful Partnership/Ownership
Compare the goals and lifestyles of the person you may be buying this house with and yourself. Will you constantly be fighting about the thermostat? Do you both smoke? Are there pets involved? Remember, you’re buying a house now – this isn’t a simple rental agreement.
Financial information will need to be shared. Are you ready to do that with another person? Is one person’s financial responsibility going to be far greater than the other person’s, or will this be an equal, 50-50 undertaking? Financial disputes have destroyed some of the closest relationships on record.
Remember to Always Have an Exit Strategy
Among all of the legal paperwork involved, there needs to be something in place that will determine what to do if one or the other partner in this home purchase wants out. Some scenarios could include the following:
- If you decide that your co-owner is unsuitable, under what circumstances, how, and when will you ask them to leave?
- How will the fair market value of your house be determined?
- For the remaining owners, what will the buyout options be?
- If someone wants out, how much notice will be required?
- And, though this is something people don’t like to think about, make sure that conditions are in place for end-of-life circumstances. The rights of your co-owner’s heirs could come into question.
How Will Your Home Buying Story Go?
For your home buying story to be a successful one, remember to always work with a contract lawyer and go through an experienced real estate agent.
The success of coownership could well rely on getting everything in legal writing. Taking notes on the back of a napkin doesn’t quite cut it for an undertaking of this magnitude.
And find a real estate agent that is excited about what they do and knows how to get the job done. From the moment you set eyes on that new house to the day that you close on it, everything will run smoother with an experienced, reputable real estate agent.
Whether you are buying a home with a friend, by yourself, or with a loved one, it is a serious endeavor involving significant financial responsibility. When buying with another individual, be sure of their goals, finances, lifestyle, etc. To enjoy the best buying experience possible, go with a reputable realtor. N.J. Lux Real Estate has a stellar reputation and has been involved in countless successful home buying endeavors. Contact us today to find out how we can help you (with or without a home buying partner) purchase the home of your dreams.