Legal Question in Real Estate Law in California

Re: Buying a house with boyfriend

You should hold title as tenants in common. Are you both going to be on the loan? You should also have an agreement between you of what happens if you split up. Is the house sold? Who lives in the house? Can one partner buy another partner out.

Re: Buying a house with boyfriend

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NOW, IN RESPONSE TO YOUR INQUIRY --

Joint tenancy of some kind (as suggested in the other responses is a good idea). I also think you should have a Cohabitation Agreement (which is like a prenuptial agreement for people who don't plan to marry soon), to protect BOTH of you. It would specify things like who pays for what, and what effect, if any, those payments would have on your ownership interest in the house. For example, If you always pay the mortgage do you later own more of the house than 50%? Or are your mortgage payments offset by his paying for the utilities and food? See a lawyer who understands family law and real property law.

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Re: Buying a house with boyfriend

There are two things you can do. The first is called a joint tenancy. If you buy the property 50-50, you would each own a 50% undivided interest. In this case, should either of you die, the other owns the entire property outright. This is basically what it would be like if you were married and took the property as community property with no pre-marital agreement. The other way to go is to take the property as 50-50 tenants in common. If either of you die, your half interest in the house goes to whomever you provide in your will or under the law if intestate succession. It would not go to your boyfriend unless you have a will that says he gets your half of the house. If you get married, you can always change the way you hold title later.

Bob

www.beauchampfirm.com

Re: Buying a house with boyfriend

I have kind of a mini-specialty in dealing with the aftermath of these boyfriend-girlfriend purchases. Here are a few pointers:

(1) Despite the high frequency of break-ups and disputes over rights, co-ownership of real property can make sense if done right, especially getting your deal fully documented.

(2) Taking title as tenants in common makes more sense than joint tenancy. First, either of you may at some point decide, for whatever reason, that you want to leave your interest in the property to someone other than the other co-owner. With tenancy in common, you can do this; with joint tenancy, you cannot. Also, a joint tenancy is always equal--if there are two joint tenants, each automatically has a 50% interest. With tenancy in common, you can, if you want, specify ownership percentages other than 50-50 in the deed. Perhaps 75-25 would better reflect the financial realities and be fairer, e.g. to reflect actual amount contributed to the down payment, whose credit is relied upon for the loan, who will be making the payments, etc.

(3) Prior to making an offer, you need a written and notarized agreement between yourselves referring to the proposed purchase of that particular property and defining: (a) intent to be co-owners at x% she, y% he. (b) source of the down payment. (c) borrowing particulars including whose credit is to be relied upon by the lender, amount and terms of loan, who will make payments, etc. (d) any commitment regarding 'sweat equity' for repairs, etc. one of the partners will be making, or any deal of this sort; and (e) a clear plan to unwind the deal if the relationship goes sour, which could be a buy-out right of one or the other, some other kind of option, or an agreement to sell and divide the money proceeds. See a lawyer to get this contract drafted once you have the basic terms in mind.

Unlike married couples, who have the community property and other family-law rules to rely upon, a court would look at your proposed deal as a routine business partnership or joint venture and would apply ordinary contract, real estate and partnership law principles to any dispute.

Re: Buying a house with boyfriend

In case you don't get married, you should take title as tenants in common, and at the same time have an attorney prepare an agreement between you two regarding the property, and covering things like financial responsibilities, upkeep, taxes, percentage of ownership, liens, buyouts of each other's share, etc., in case there are problems later.