Legal Question in Real Estate Law in California

Re: How do two married couples buy property?

You at least want to have the land subdivided (by a professional land surveyor) then have one subdivision conveyed to one couple and the other one conveyed to the other couple. This is expensive, but it is the only safe way to do it, that I can think of. Or you can save yourself some money now, but inevitably end up paying a lot more tomorrow. Lawsuits over property rights generally cost a minimum of $30,000 in attorney fees.

Re: How do two married couples buy property?

The percentage of such ventures that end in lawsuits is pretty high, and prior subdivision (or total abstinence) may be sound advice.

However, if you're determined to do it, here is some possibly useful information.

Have a detailed prior written agreement covering all aspects of the transaction, including source of down payment, whose credit will be used to obtain loans, who will make payment, who has the right to occupy and use each part of the property, whether anyone has special rights or duties (such as a right to sweat equity or a duty to make repairs), and most importantly how you will wind up the deal upon a divorce, a disagreement between the couples, someone's death or bankruptcy, etc.

Have it notarized.

The form of holding title is important. One of the more common forms of holding is 'tenants in common,' but you could also have two or four joint tenancies (each couple holding either as a community or as separate property). You could form a general partnership, a limited liability company, a limited partnership or even a corporation. You could create a trust.

I think the final decision will require personal consultation(s) with one or more real-estate attorneys who can interview you in detail on your expectations. Is this a money-making investment or for personal use, such as a lot at Tahoe? How old are you? Children? How well do you know each other? Is this an incidental investment in large portfolios or are you betting your bottom dollars?

The quality and comprehensive nature of your written agreement is more important than the form of holding title. Substance over form.

Re: How do two married couples buy property?

You should hold the title as Tenants in Common. It is most important that you have a written agreement setting forth any contingency and items such as divorce, death. buy-out. You should have an attorney write that agreement. Our law firm can offer you free consultation with respect to what should be put in the agreement.

Re: How do two married couples buy property?

You should probably hold the title as tenants in common--this gives all of you an equal right to the property, and that right is something you can sell or give by will or trust when you die.

Also important to have is a detailed written agreement regarding everyone's expectations, rights and responsibilities concerning the property. You don't think they will, but disputes can arise and the agreement can either keep them from starting or protect your investment if the dispute grows. See an attorney about preparing such an agreement.