Be it a common law relationship, girlfriend, friend, parent, and even spouse, when you’re purchasing a home ensure you’re very clear in writing what will happen when the house is a) sold, and b) if someone wants to exit the partnership early.
It seems like common sense, put something in writing so you’re covering your basis. It is a house after all, one of the largest investments you’ll ever make.
This is especially important when you’re going into business with someone be it an investment property or live in arrangement.
Countless times only a verbal agreement is made between the parties. Inevitably someone wants to exit the deal early for whatever reason. OTher times the home doubles in value (or declines) and one owner wants out. It can be that simple.
Maybe it’s money, maybe it’ stime to move on. Time always brings up new curveballs in life and it’s no surprise that it would affect the way we do business.
If you don’t have an agreement then you might be stuck selling your house when you don’t want to (hopefully your investment property.) Or perhaps you want to exit but you can’t since your informal agreement made in the past held up in court and you’re required to stick it out.
It costs very little in relation to the house investment to have a lawyer draft out an agreement for both parties. Putting something concrete in writing early will remove future headaches when someone inevitably pulls out.