Considering Buying Property with a partner

[LARosebud]

What is the name of your state (only U.S. law)? RI
I currently live in RI. I will be moving to CA in the next few months and am
considering buying a condo with a non-relative. I want to do this while still living here in RI. Each of us will provide an equal share for the down payment. We want all the details of this purchase clearly laid out before making any decisions. What are the things that I need to consider?

 

[tranquility]

What happens when things go wrong.

 

[LARosebud]

We want to hammer out all the details so there is a clear set of rules of which both of us would be willing to be held accountable. If things were to go wrong one of us would buy out the other.

 

[sandyclaus]

We want to hammer out all the details so there is a clear set of rules of which both of us would be willing to be held accountable. If things were to go wrong one of us would buy out the other.

Nine times out of then, in similar domestic partnerships, when there is an unexpected break-up, that is what causes the most problems with a shared financial obligation such as what you are proposing.

For your protection and that of your unmarried partner, I would HIGHLY recommend speaking to an attorney to have them prepare an airtight agreement that protects BOTH of you in the event that the relationship takes a dive.

 

[HomeGuru]

Nine times out of then, in similar domestic partnerships, when there is an unexpected break-up, that is what causes the most problems with a shared financial obligation such as what you are proposing.

For your protection and that of your unmarried partner, I would HIGHLY recommend speaking to an attorney to have them prepare an airtight agreement that protects BOTH of you in the event that the relationship takes a dive.

**A: I agree and would also add water tight.

 

[LARosebud]

This is not a relationship issue. We already know how to handle that part of it. We are just two people buying a piece of property together. It is a business transaction. What I want to know is what are the legal issues that come into play?

 

[HomeGuru]

This is not a relationship issue. We already know how to handle that part of it. We are just two people buying a piece of property together. It is a business transaction. What I want to know is what are the legal issues that come into play?

**A: it is a legal real estate issue so heed the advice. Read some of the threads of people who got into a real mess and have posted after the fact.

 

[FlyingRon]

If you don't intend to live together for the rest of your life, I'd recommend strongly you skip it.

Even if you do, as pointed out, stuff happens.

 

[LARosebud]

Will someone please just answer the question?

I don't want to know what you think. I want to know the LEGAL issues.

 

[sandyclaus]

I don't want to know what you think. I want to know the LEGAL issues.

The most common LEGAL issues are if two unmarried partners split up, and what happens with the property.

I'm sure that you have all the confidence in the world that you and your partner will end up together forever, but when you two end up going your separate ways, IF you do, you will want to be fully protected.

Things to think about include:

• Who gets to live in the property?
• Do both of you remain liable for payments?
• Should there be an option to buyout the interest/equity of the other party? Should it include the down payments, or does this stay with the property?
• Who gets the shared furnishings/appliances/electronics, etc.?
• Who pays for the shared expenses, like food/utilities/extra services?
• If you both decide to move out, would you use the property as a rental property, and if so, how would the rental income/credits be divided?
• Who gets to claim the tax credits for the purchase?

You need to be realistic here and think about what MAY happen and be better prepared.

 

[LARosebud]

The most common LEGAL issues are if two unmarried partners split up, and what happens with the property.


Things to think about include:

• Who gets to live in the property?
• Do both of you remain liable for payments?
• Should there be an option to buyout the interest/equity of the other party? Should it include the down payments, or does this stay with the property?
• Who gets the shared furnishings/appliances/electronics, etc.?
• Who pays for the shared expenses, like food/utilities/extra services?
• If you both decide to move out, would you use the property as a rental property, and if so, how would the rental income/credits be divided?
• Who gets to claim the tax credits for the purchase?

You need to be realistic here and think about what MAY happen and be better prepared.

I DON'T plan on spending my life with this person. This is a business transaction. Most of the issues you mentioned have already been decided and agreed upon.

Should there be an option to buyout the interest/equity of the other party? Should it include the down payments, or does this stay with the property?

This is the type of information I'm looking for. Please continue.

 

[ecmst12]

You each need to be represented by a separate attorney and have a contract prepared that suits you both.

 

[LARosebud]

Thank you.
I will do that.