For over twenty years I have had couples come to me that wanted to buy a house together. Sometimes the pair are engaged, sometimes they are committed to each other, other just want to live together indefinitely. These couples have one thing in common; they plan to own and live in the house together for a long time. With rose colored glasses the sky is blue, the grass is green the air is clear and the couple will be together forever!
Lenders have no problem lending to an unmarried couple. The purchase is easy, one day you hope to be a homeowner and in a few days you are a homeowner. It is a simple process to join the ranks of those burdened by mortgages, repair bills and the other joys of ownership. What happens now if the wedding does not occur or when you partner moves on? When the split arrives you both still own the house together. In North Carolina you own the house as tenants in common. This ownership means that each party has an undivided one half interest in the real estate. Either party can sell their half or bequeath their half. Who wants a one half undivided interest in a house on Main Street?
If you are going to buy a house with someone other than your spouse then you should consider planning for the possibility that disagreements, fights or separation may occur. You can set up a buy out or sale procedure. An aggreement can set out a procedure for who gets to buy the other person out and how much the buyout will cost. An agreement can set out how to select a realtor or how to set a sales price. This is planning to avoid chaos, confusion and heartbreak.
If you find yourself about to buy real estate with your partner, friend or fiance first call an attorney and set up a real estate purchase agreement. Plan ahead. I know dozens that wish they had!
Monday, June 16, 2008
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