Want to buy a home but don’t have the down payment or having trouble with the financing? Then maybe you should consider purchasing a home with someone else & pull your resources together. This alternative could allow you the opportunity to qualify for a larger mortgage and permit you to purchase a home sooner rather than later. It is important however to research all the financial and legal issues before you make the decision.
Buying and owning a home with someone requires a few important decisions and one of them is to decide on how you will ‘hold title’ (legal ownership). There are several ways in which to do this but the two most common are ‘Joint Tenancy’ (right of survivorship) and ‘Tenants in Common’. Joint Tenancies allows both owners to own equal shares of the property, whereas the ‘right of survivorship’ would go automatically go to the other party, should the first party pass away.
Tenants in Common however do not hold the same ‘right of survivorship’ as joint tenancy does. In the case of a tenant in common, each party has the right to will their portion to a beneficiary.
Regardless of whom you decide to purchase a home with, be sure to seek legal advice to determine if the situation is right for you. Choosing to purchase a home with someone else could benefit both parties, but there are responsibilities that come with owning a home. Be sure to prepare a written agreement as to who is responsible for those items. An example of such items would insurance, maintenance, tax deductions and improvements. Always seek legal and tax advice from a professional before making your decision.
Terrie Hunt , Broker - Dick Shelton Investment Properties. (916) 663-6300. “Outstanding Life Member” of the Sacramento Association of Realtors. DRE #01213387. www.TerrieHuntsForHomes.com – Success and Experience Working For You