A single friend of mine who is considering buying a home with her live-in boyfriend once asked my opinion on the matter. There is no easy answer to that question, however, and whether it is a smart choice or not would depend on the couple, and their potential to be amicable to one another should the relationship crumble. In the case of my friend, she and her boyfriend were planning on getting married, but no date had been set.
Is it Smart to Buy a Home Together before Marriage?
There are some engaged couples that choose to buy a home together so that they have it set up and ready to move into when they do tie the knot. They simply come home from the honeymoon and have their home in place without having to go through the process and expense of renting while they look for the right home.
I think that either scenario is okay if you are comfortable with it. Hey, some people don’t even believe in marriage, but that shouldn’t bar them from becoming homeowners, should it?
If you and your special one find a dream home, who’s to say you need wedding rings on in order to own it? Your real estate agent and lender can help you to understand the different ways that you can hold title together, without being man and wife. The manner that you title the home will have a lot to do with the legal ownership of the home, and how the home would be transferred, should one of you pass away.
There are some title types come with consequences from a tax perspective. Some states have restrictions on holding title, however, and one of those is that married couples only can hold community property, like a home. Other ways to hold a title together without marriage include tenants – in – common, joint tenancy, and sole and separate ownership.
Should You Put A Ring On It Before Buying A Home?
There are other considerations, however, beyond how the property will be titled. You will also need to discuss making a down payment together, and paying closing costs. In these situations, most people make a fifty/fifty split of the costs.
It may be a good idea for your transaction to be governed by a home buying partnership agreement. Sure, your relationship is “all good” now, but no one begins a relationship (or even a marriage) by thinking that it will end. Couples break up all the time, and marriages end. For this reason, putting it all in writing can only serve to protect both of you. A real estate lawyer can help you to draw up such an agreement.
In a nutshell, your agreement should state in advance what will happen if the two of you decide to call it quits. Will the home go up for sale? Will one party have the option to “buy out” the other party? There should be no questions, legally at least, if you and your partner decide that it is not working out. By preparing and signing this agreement, you protect yourself and your partner at the same time.
For more information about the home buying process, you can visit Kimberley Joy Kelly’s website where she talks about buying, selling, and news about the later homes buying trends. You can also search homes on the MLS as well as view some fantastic Golfing Communities in the Southern Desert of California.
