Buying a Home with Someone Else? Always Get it in Writing

Buying a house with your boyfriend/girlfriend isn’t really the greatest idea on Earth unless you’re really sure that you’re going to get married eventually (in which case, why haven’t you just gotten married already?) But if you insist, you should get an agreement in writing that specifies exactly what will happen if you break up (prepared by a lawyer of course).

Who gets to keep the house? How is the other person going to be compensated? Do you sell and split the proceeds?

You should also know what percentage of ownership you have. If you make the down payment, and then split the mortgage payments every month, what percentage of the equity are you entitled to?

This also goes for buying investments, whether it’s with a business partner or a romantic partner. When things go bad, a good partnership agreement will make life so much easier, unless you enjoy litigation.


1 Comment so far

  1. Ferrarihead on December 12th, 2006

    I agree, once you buy property and sign on the dotted line, you are agreeing to a very long relationship with that person. Not getting along is not an option…..arguments usually result in very bad terms between the parties…. http://www.propertyhype.com

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