The Minimum Preparatory Steps When Co-Purchasing A Home With A Friend Or Family Member
Both mortgage guidelines and the economy have tightened since 2006, bringing more attention to “joint homeowners” — non-spousal partners that buy and share a home as roommates.
The practice is not new, but, anecdotally, co-purchasing is becoming more common.
In the video above — filmed two years ago but still on-target today — real estate expert Barbara Corcoran provides good advice for co-purchasing partners. Like any business relationship, it’s important to plan ahead.
- Hire an attorney to draft contracts and agreements
- Have a plan for when one or both parties wants to move or sell
- Consider life insurance policies on each other
The over-riding theme for co-purchasing arrangements is to be prepared. Done right, however, they can create two proud homeowners where there would have otherwise been none.