How does co-buying work?

Hi Kristina,

With respect to co-buying in terms of mortgage financing, it is very possible. What it means is that you and someone else are purchasing a property together and would normally get approved for a mortgage together on the mortgage application. There can be multiple scenarios regarding co-buying and I would suggest, and welcome you to contact me so we can discuss it further in detail.

As for the legal ownership structure, that all depends on who is the other buyer. This is where a well experienced and trustworthy Lawyer (legal counsel) comes into the picture and definitely you should consult with one.

The best is to contact a lawyer and have an agreement signed with the other party.

Here's a nice little article on the subject. Beware! Get an agreement in writing with your friend!
http://www.nytimes.com/2007/01/21/realestate/21home.html

The best advice is to contact your real estate lawyer and have him/her draw up a contract with you and the other side of the transaction. Great article above submitted by Colin. It's a must read !!

Co-Buying has been both a blessing (if the parties in the transaction can purchase a home they separately could not afford) or a burdon (if the parties have a conflict). There are always remedies for any conflict with selling the property being the extreme case.
For Whatever Moves You... jcarlisle@remax.net

Co-Buying is when two or more people decide to purchase a property. There are many ownership structures to consider in this situation such as if you are buying together with both your names on title, if you are buying as a trustee, if there are beneficial interests, if you are setting up a corporation to purchase real estate, etc. The most common in my practice are people who are purchasing in their own names with an agreement signed before closing. These agreement vary depending on your situation, but the most common is the co-habitation agreement. I have had many couples specifically ask for this because they are not married, but would like to take the next step and live together. By having a legal agreement in place BEFORE purchasing real estate, people ensure that they are protected if things don't work out in the future.