Here are a few points to keep in mind when unmarried parties buy a house together. Should the relationship not work out:
1) What are you going to do about the mortgage payments? Both parties are jointly and severally liable, so if the one can't afford it the other will be asked to pay and vice versa. Non payment will negatively affect both profiles.
2) If the parties are in a partnership and one wants to sell, but the other either does not want to or cannot buy out the other party, what then?
3) One of the parties wants to marry another, then that home loan repayment will affect the affordability of the new couple.
These are very important points to keep in mind before deciding to purchase a property with another person. The information mentioned here is not to put anyone off from buying, but so that you can enter into a contract with eyes open.
I also suggest that similar points are set out by an attorney should things not work out that there is a pre-agreed way to either buy out the other person or to dispose of the property in an amicable way.
If you have any questions relating to home loans or home loans financing, please do not hesitate to contact me.
