Can unmarried couples co-own property?

If you are part of a couple who isn’t married to each other yet and want to buy property, you will need to keep your eyes open and take rational decisions. Buying a property is a big decision of life, thus it becomes essential to flip the coin and to see pros and cons of this.

Firstly, is it possible?

To buy real estate, you need legal documentation and it entirely depends upon the State you are currently living in. Whether it allows young unmarried couples to buy a property together or not is an important thing to examine. Certain places allow such purchases whereas some places oppose this. If you buy a property together and in the case of a split, then the easiest way is to sell the property. Make sure that these clauses are mentioned in the documents at the time of making the purchase. Be wise and keep all scenarios in mind – in property transactions, don’t let sentiment rule.

Points to consider:

• Always give consideration to the credit score of both of you. A higher credit score surely affects the amount of debt you will be paying. Moreover, knowing your partner and their credit score is one of the important things to consider if both are responsible for paying the loan back.
• Form a written agreement with the help of real estate lawyer with all the terms and conditions. Contract should have each and every detail starting from paying the loan to bills.
• Open a joint account if you don’t have one. Both parties can set up automatic monthly deposits thereby paying the required amount.
• Whose name should be on the house deed? Assuming that both of you would be paying for the house, you should have both your names in the house deed. This to protect both parties in case of a break up.
• Joint tenancy is where both parties share the house equally. There is also joint tenancy with right of survivorship that allows the house to be transferred easily to the surviving person without undergoing probate.
• If the ownership option chosen is ‘tenants in common’, especially if one partner pays more for the purchase, on their death, the property will not automatically go to the other partner unless specified in the will. If not mentioned in the will, the property will automatically go to next living relative (as per laws of the State where property is located).
• Prepare yourself for commitment before taking this major decision of your life. You should be clear about your future plans and both of you should know about each other’s policies.

Remember, the key factor here is communication. Partners must not assume the comfortable status quo – instead, be aware that life happens and communicating each other’s expectations and the exact terms of agreement is important.