If you are planning to buy a house with someone, it is important to have a written agreement in place. This agreement, commonly called a “buying a house together agreement” or a “co-ownership agreement,” can help to prevent misunderstandings, avoid disputes, and protect your investment.
Here are some key elements that should be included in a buying a house together agreement:
1. Ownership percentage: The agreement should specify the percentage of the house that each person owns. This is important because it will determine each person`s share of any profits or losses if the house is sold or one person wants to buy out the other`s share.
2. Financial responsibilities: The agreement should outline each person`s financial responsibilities. This could include how the down payment and mortgage payments will be split, who will pay for repairs and maintenance, and how property taxes and insurance will be handled.
3. Living arrangements: If you will be living in the house together, the agreement should outline the living arrangements. This could include how the bedrooms and common areas will be shared, who will be responsible for cleaning and maintenance, and what happens if one person wants to move out or bring in a roommate.
4. Dispute resolution: The agreement should include a method for resolving any disputes that may arise. This could include mediation, arbitration, or going to court.
5. Exit plan: The agreement should outline what will happen if one person wants to sell their share of the house or if the house needs to be sold for other reasons. This could include a right of first refusal, where the other person has the option to buy out the other`s share before it is sold to someone else.
Having a buying a house together agreement in place can help to prevent disputes and protect your investment. Make sure to consult with a lawyer to ensure that the agreement meets your specific needs and follows all legal requirements.