Should You Buy A House With Your Friend?
Should You Buy A House With Your Friend?
Irrespective of your relationship with the person, it is good to agree on the matters pertaining to property. You can plan in detail how to split the proceeds in case you get separated. Think in detail how to sort out the disagreement in case one person is ready for the sale of the property but not another person.
Entitlement
Entitlement decides who holds the title. It decides who can sign the documents and the agreements. Later, property transfer will be based on this criterion of the document. It also decides how the property will be transferred in case of the death of any of the owners. Most of the time co-buyers who are not couples, share a title as tenants in common or as joint tenants. They also decide the right of survivorship. Creating an LLC is another option which is advantageous for buying rental or vacation property jointly with the friend.
Deed of Trust
After your agreement on how to split the proceeds and future sale, your advocate will draw up a deed of trust having details of agreement and transactions.
Decide How to Split
Disputes on the property may arise at any time. It may happen that you or your friend entangle in any financial problem and want to sell the property henceforth to get instant money as the solution. So, it is pragmatic to split the value of the house in half. But, it can’t work in a practical sense due to mortgage issue.
Consider Joint Mortgage
You should always take out a joint mortgage with one single monthly repayment. The practical way is to calculate how much of the monthly mortgage payment will be paid by both of the friends. Another option is to consider making the unequal payment of the mortgage legally binding. Yet another option is to split the mortgage repayment down the middle.
If you are thinking to invest in a property in Noida, Jaypee Pavilion Heights could be a good choice to consider joint mortgages with your friend.
Get Percentage of the Proceeds
If you want to keep a safe side with the future sale of the house, you should get percentages of the proceeds. Also calculate fairly that how much percentage you both will have to work out including stamp duty and land tax.
Buy Furniture Separately
Buying just a house is not everything granted that you need to live. You will also need a house and other appliances. So, consider how to buy the furniture. The more pragmatic way is to buy all movable items separately. It will help you get your items when you are selling the house and later, you can use that item somewhere else. This trick will help you avoid the arguments at the time of separation of the property.
Keeping in mind the things that can create dispute at the time of transfer or sale of the property will help in the more advantageous position of property dealing with your friend.
This Real Estate article was published on Otherarticles.com, an article and news website.