Are you unmarried and considering purchasing a home with your partner? Here's what you need to
IF YOU ARE IN AN UNMARRIED RELATIONSHIP, DON’T BUY A HOUSE OR CONDO WITHOUT A WRITTEN AGREEMENT.
Often couples who are living together may decide to purchase a house (or condo) jointly and don’t consider several possible issues such as:
Are they both contributing equally regarding the deposit and closing costs?
How much will each be contributing to the ongoing expenses such as the mortgage, insurance, taxes and maintenance? Will each one be expected to contribute 50%?
Will one person be contributing disproportionately? Does that partner want or expect to have a larger percentage ownership (50%) in the house for contributing more $$ for #1 or #2 above?
What if a partner loses their job or is disabled and is no longer able to contribute?
What if they decide to break up? Do they immediately list the property for sale?
Can one of the partners remain in the house? Under what circumstances and conditions?
Can one partner buy out the other partner?
What if both want to buy the other out…how do you choose who gets to be the one to buy out the other?
What if one of them dies?
So if you’re unmarried and considering this life-changing purchase with your partner, get a written agreement in place prior to signing on the dotted line. You’ll both be glad you did.