If two individuals are not married and both want to purchase a house together, several options can be considered to decide who buys the house or how ownership is shared. Here are some common approaches:
Equal ownership: Both individuals can decide to split the ownership of the house equally, typically 50/50. This means they both contribute equally to the down payment, mortgage payments, and other associated costs. Each person's share in the property will be legally documented.
Proportional ownership: If both individuals have different financial capabilities, they might choose to split the ownership proportionally based on their contributions. For example, if one person contributes 60% of the total costs, they might have a 60% ownership stake, while the other person, contributing 40%, will have a 40% stake.
Tenant-in-common: This is a legal arrangement where each individual owns a specific percentage or share of the property. The shares don't have to be equal. If one of the individuals wants to sell their share or leave the property, they can do so, and their share can be passed on to someone else, even outside of a will.
Joint tenancy with right of survivorship: In this arrangement, both individuals have equal ownership of the property, and if one person passes away, their share automatically transfers to the other without going through probate.
Partnership agreement: Before purchasing the property, the individuals can enter into a written partnership agreement that outlines how ownership, expenses, and decisions will be shared. This agreement can cover various scenarios, including what happens if one person wants to sell their share or if there's a disagreement.
Renting: If deciding on ownership proves challenging, both individuals might choose to rent the property together, sharing the rental costs.
It's essential to seek legal advice when making such a significant financial decision. A real estate attorney or legal professional can help draft an agreement that protects the rights and interests of both parties involved. Additionally, both individuals should have a transparent and honest conversation about their expectations and financial responsibilities before moving forward with the purchase.