I NEED REAL ESTATE HELP!!!!!! Question about Joint Tenancy?

Question

My boyfriend is buying a home with a friend. He was just told yesterday that it is good to have a contract between him and his friend in case anything happens. Now I'm not sure which contract this is, but he asked me to look up "Joint Tenancy" but every time I do it's about renters. He is actually going to be on the Deed, and he needs to write up a contract but doesn't have a clue where to start. I need a sample contract or something to go by that I can add on to, of course any advice is greatly appreciated but I need something like a template to start with so I can include the names, etc. PLEASE HELP!!!! The house closes on the 10th and he wants to include it in the contract. YOUR HELP IS ALWAYS APPRECIATED.

Just a note, the paperwork through a realator is already put through, he just wants a contract stating what will happen if someone backs out, etc.

Answer 1

There's a couple things they should consider: First, as previously mentioned, joint tenancy gives automatic survivorship rights to the other party if one party dies. This is great for a married couple, not good for two unrelated guys buying a home together. They should probably take title as "tenants in common". This is usually done with investors, and anyone else that may not wish their stake in the home to go to the other party with no compensation.

Second, and BEFORE THEY CLOSE, they need to find an attorney who can advise them on a couple issues. First, what happens if one person dies? If your BF's friend dies, his stake in the property is locked up in probate for a while. A will should probably be drafted for both parties to address what happens to their stake. If the BF's friend leaves his stake to his parents, is there a buy/sell clause? Your BF should have the right to buy out his partner's stake, before being forced to sell the home to cash-out his heirs.

Lastly, the will should probably address the survivor's rights to collect on payments for X amount of time, or something to protect your BF from having to make 100% of the payments during the transition period.

Assuming this is being purchased as an investment, they may wish to incorporate themselves, to protect their personal assets against lawsuits, etc... They can potentially purchase the property and quit-claim the deed into their corporation's name. It is very common for partners like this to purchase some form of cheap term life insurance to cover the other in case of their death.

Bottom line, he has no business completing this transaction without spending a couple hours with a competent real estate attorney. A few hundred bucks today could save many thousands later, if for any reason tragedy did strike.

The attorney can always draft the purchase agreement for you for a nominal cost.

Answer 2

By taking title as "joint tenants", should one die, the other one has survivorship rights. In other words, the partner would obtain title to the property. This is common for married couples. When you write a sales contract to purchase property, this information is requested after the names of the individuals purchasing. If you aren't using the assistance of a Realtor, I strongly urge you to hire a Real Estate Attorney to write the offer. You might seek an on line Purchase Agreement, which may give you the verbage you seek.

Answer 3

Other than what DJ B said, you might want to strike a partnership agreement on the management and or ownership of the property since there is no relationship between them. Of couse if you are from a community property state, even though the property was acquired prior to a marriage, that can change it's status after one or both of the joint tenats gets married by the actions of the parties with their spouses and as it relates to the property.
Buena Suerte

Answer 4

There is a glossary of real estate terms on the propertygame website.

They define Joint Tenants as ... "More than one registered proprietor, whereby each owner has an equal share and equal rights in the property."

This is different to Tenants in Common where ..."Two or more buyers own a property with unequal shares and rights." I hope this helps!

Answer 5

If the house is owned as "joint tenants", then if the other guy dies, your boyfriend inheriits his share. Even if he has a wife or kids, it would go to your boyfriend.

If they own it as "tenants in common" than it would be passed on to any and all heirs.

There's no need for a contract unless you want it to work in a different way or there is something else you need to be covered.

Answer 6

you have no longer any rights to the 0.5 that belongs to the "one brother". as long as he leaves the valuables to his spouse, it somewhat is hers to furnish or save. Why would desire to she depart it to the 4 heirs? your basically selection is to attempt to purchase it from the spouse or convince her to furnish it to you. I artwork for a identify business enterprise in Kansas via how. Our rules are very such as Texas.