| You
and your honey thinking of taking the big plunge? Do you feel
ready for such a big commitment?
No, we're
not talking about a wedding or commitment ceremony-we're talking
about buying a house together when your marital status is
legally "single". While you don't have to be married to own
a home together, you do need to realize that buying property
is likely to be just as complicated, expensive and life altering
as any marriage.
Why do
we need a written contract?
A
contract is no more than an agreement to do (or not to do)
something. Marriage, for example, is a contractual relationship.
Saying "I do" commits a couple to a well-established set of
state laws and rules governing, among other things, the couple's
property rights if they split up. Unlike married couples,
however, unmarried couples and same sex couples do not automatically
agree to any contractual agreement when they start a relationship.
Considering a contract and thinking about the issues involved
can help you in many other ways; It will help you figure out
what you intend- and that, ideally, will lessen disagreement
and misunderstanding even when things are going well. Most
states enforce written contracts between same sex partners,
the sooner you agree on if and how to share your property,
the less confusion and misery you may possibly face later.
Should
we hire a lawyer?
A
written agreement between two people is considered a legal
contract in most cases. One written in the presence of a lawyer
may carry more weight in the event of a dispute. You may also
check the internet or local bookstore for the book entitled
"The Living Together Kit" by Ihara, Warner and Hertz. In any
case, if you are not sure how to write up an agreement, consider
legal counsel.
Can't
we just split everything 50/50?
A
couple with widely divergent incomes and assets may want to
approach buying the house differently than an even, 50/50
split. If one person is supplying the down payment, it might
be agreed that this person owns a larger portion of the house.
If the other person will be adding value to the house over
time by fixing it up, than the contract might reflect this
person's growing interest in the house.
What happens
if one of us dies?
It
is crucial to be aware of your choices when it comes to taking
title to a property. While married couples have the option
of community property laws, if you decide against marriage
or legally cannot marry, you can still protect your investment.
If you take title to the property as Joint Tenants, this will
allow the property to pass to the surviving person on title.
You can also take title as Tenants in Common. This allows
you to will your interest in the home to whom -ever you wish.
There are other ways to take title, but these are the most
common.
How do
we agree on a relationship contract without being doomsayers?
Just
like buying car insurance even though we are not planning
an accident, insurance is a safe bet against the unknown.
With a divorce rate of over 50% for traditional marriages,
a non-traditional couple face the same statistics. If you
love someone, you want to protect them no matter what. That
means discussing preparations for an unknown future. The benefit
of the security of tomorrow can allow you to focus on each
other today
Could
choosing the right real estate agent and loan officer really
make a difference?
Absolutely!
Who you rely on for counsel and advice, in any situation must
start from the basis of trust. In order to build trust we
believe in offering information of value so you can approach
this important investment armed with the education and knowledge
necessary to make your decision with confidence.
Can
we both claim the interest deduction?
Yes,
but only in proportion to the percentage of mortgage payments
each partner makes. If you split the mortgage payments 70-30
than the interest deduction is 70-30. Just make sure you have
records proving each partner's contribution. |
