Advice Topics
- Buying (205)
- Selling (215)
- Renting (41)
- Market News & Trends (12)
- Finance & Legal Info (97)
- Tips & Advice (98)
- Working With an Agent (54)
- Marketing (4)
- Investing (16)
- Affordable Housing (18)
- Green Housing (2)
- Schools (1)
- Remodeling (32)
- International Real Estate (8)
- Terms & Definitions (27)
- Home Loans (15)
Top Contributors (View All)
Find a Top Real Estate Agent Near You
What do i need to do for home puchase between friends?
We have signed a joint tenancy agreement. I want to now include a prenup but for friends. The language would be regarding splitting equity buildup, what to do for upon selling home and other additions. I will be closing in the next 3 to 4 ddays.can you advise the steps to take. Can you advise the form needed and lastly please add any additional thoughts. Thank you
The property is a single story residence which we both will live in.
The property is a single story residence which we both will live in.
Asked By Angela Ward | LANCASTER, FL | 1230 views | Buying | Created 5 months ago
Answer(4)
Amanda Courtney
REP Realty Group
You will need a joint tenancy agreement or co-ownership contract that outlines shares, financial contributions, and what happens if one person sells. A real estate attorney or your agent can help you structure it properly.
- 4 weeks ago
Helpful (0)
Unhelpful (0)
Jason Craig
Coldwell Banker
Buying real estate with a friend is essentially a business partnership, so you want more than just a deed. A joint tenancy gives you equal, undivided ownership with right of survivorship, but it doesn’t spell out responsibilities or what happens if one of you wants out. The typical way to handle that is through a co‑ownership agreement or cohabitation agreement drafted by an attorney.
That agreement should cover:
• How much each of you is contributing up front and what percentage of ownership that translates to.
• Who will be on the mortgage and how the monthly payment, taxes, insurance and maintenance will be split.
• How you’ll handle improvements and repairs and whether one party gets credit for extra contributions.
• What happens if one party wants to sell, move out or passes away. Does the other have a right to buy out their share? How is the property valued? How will proceeds be divided if you sell together?
• Dispute resolution and what happens if someone stops paying.
An attorney can prepare a co‑ownership contract and update the deed to reflect the form of title you choose (joint tenancy vs. tenancy in common). Lenders may need to review any changes prior to closing, so don’t wait until the last minute. Also consider drawing up wills and life insurance to protect each other’s interests. There is no one‑size‑fits‑all “prenup for friends,” so the best step is to consult a local real estate attorney to draft documents that comply with Florida law before you close.
That agreement should cover:
• How much each of you is contributing up front and what percentage of ownership that translates to.
• Who will be on the mortgage and how the monthly payment, taxes, insurance and maintenance will be split.
• How you’ll handle improvements and repairs and whether one party gets credit for extra contributions.
• What happens if one party wants to sell, move out or passes away. Does the other have a right to buy out their share? How is the property valued? How will proceeds be divided if you sell together?
• Dispute resolution and what happens if someone stops paying.
An attorney can prepare a co‑ownership contract and update the deed to reflect the form of title you choose (joint tenancy vs. tenancy in common). Lenders may need to review any changes prior to closing, so don’t wait until the last minute. Also consider drawing up wills and life insurance to protect each other’s interests. There is no one‑size‑fits‑all “prenup for friends,” so the best step is to consult a local real estate attorney to draft documents that comply with Florida law before you close.
- 3 weeks ago
- Helpful (0)
- Unhelpful (0)
Are you ready to find a top agent near you?
Browse profiles of the highest ranked agents in your area and find one that meets your specific needs.
Pennie Arneson
eXp Realty, LLC
This is a question for a real estate attorney. I would consult with one before closing, and in the future, before signing anything.
- 3 months ago
- Helpful (0)
- Unhelpful (0)
Sarah Jourdan
Coldwell Banker Realty
I would highly suggest contacting a local real estate attorney or title representative to assist you in this matter.
- 5 months ago
- Helpful (0)
- Unhelpful (0)
Related Questions
-
What is the first step in buying a home?
- Asked by Mike M.
- 1442 views
- Buying
- Updated 2 years ago
-
How to buy a house without closing costs or down payments?
- Asked by Timothy M.
- 1246 views
- Buying
- Updated 2 years ago