Legal Question in Real Estate Law in Pennsylvania

First: No one should sign a contract to buy or sell real estate without having a lawyer review it first. The Realtor does not represent the buyer or the seller, and cannot give legal advice.

Second: Whenever unmarried people buy a house together, there should be a co-owners' agreement, that spells out their relative interest in the property, and the responsibility and rights of each co-owner. The agreement should include what will happen if the co-owners split up, such as a buy-out provision, how to value the property for that purpose, and what to do if the parties can't agree. One of those options would be to sell the property and divide the net proceeds [after paying all costs of the sale and any mortgages or other liens on the property].

Third, the only way for her father to protect his investment is to have you and your girlfriend give him a note and mortgage securing his loan. The mortgage should be recorded. A "form" mortgage that can be purchase on-line or from a stationary or home improvement store will not contain the terms that you describe, such as what percentage of the net proceeds of a sale of property he would be entitled to. If the plan is that he does not get back more than the money he is investing plus interest it earns until it is paid off, the mortgage would be somewhat less complicated. But trying to save money by buying or copying a "form" mortgage will probably result in lots of expenses and possible losses down the line when the split occurs or the mortgage/loan is not paid off.

Each of you should have your own attorneys, because each of you have separate interest.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.