Is there any ways for friends to buy a house together?

Question

-say, 3 friends.
-With home loan, and down payment, not cash.
-Houses in California are prohibitively expensive for young professionals, this would allow us to get into a nice area.
-So that one person does not have to sign all the paperwork individually and "trust" the others.

Answer 1

Yes, all of you can purchase the home together. Depending on what state you live in, this could be called a joint tenancy or a tenancy by the entirety. A joint tenancy gives each member an equal share in the home (in your case, 1/3) and a tenancy by the entirety gives each member 100% share in the home. You should also consider a rights of survivorship clause if there is none by state statute. This clause will equally divide the members share who dies between the surviving members.

I would also consider a trust. Putting the home into a trust for the benefit of the members, will ensure that no single member can force the sale of the home. In a joint tenancy or tenancy by the entirety, each member has the right to take their share of the equity at any time. So, if one of the members decides to leave the home, he can force the sale of the home if the remaining two members can't come up with the funds to pay him his share. Or, you would have to take out an equity loan to cover his share. Placing the home in a trust, under the management of a trustee will insure you against this.

Answer 2

Check your state guide lines but all 3 of you should be able to share the down payment expenses and all be listed on the title.You may all be able to use 1 attorney or you may prefer different attorneys, but that may confuse the matter. You will all be held legally responsible for the mortgage and tax's as well as standard utility bills.You will have to work that out amongst your selves.Hope this helps.

Answer 3

I would question the wisdom in this idea. There are a 1000 things that could go wrong. I will only name a few.
1. Marriage proposals
2. Unemployment
3. Bad blood
4. Cleanliness
5. Laziness
6. Borrowers
7. Takers
8. Boyfriends
9. Girlfriends
10. Habits
11. etc..etc...etc..........
I would strongly suggest renting and only with a 6 month lease, that way if things become strained you have a way out.

Answer 4

You should create a partnership and have the partnership purchase the property. In the partnership, make provisions for death (what happens if one of you dies), disability (one of you becomes disabled and unable to pay their share), divorce (one of you gets married then divorced. You would hate to have one of your friend's ex-wives lawyer come after the home) and departure (one of you no longer wants to be a part of this deal due to argueing or a job transfer or whatever).

If you're looking to buy a home in Orange, Riverside or San Diego County, shoot me an e-mail and I'll help you.

Regards

Answer 5

Hello =)

Of course....not a problem...

It's simply called joint ownership, and is the same as if a partnership in business bought a property.

It's much easier as far as securing a mortgage as well, since there will be 3 incomes to support it.

Namaste, and Happy New Year,

--Tom

Answer 6

Yes; it is called "tenancy in common." You set up the contract however you desire: one owns 33-1/3%, etc. The "grant" clause in your deed will specify the three of you as tenants-in-common.

The alternative is most commonly used with families: it is called "joint tenancy." Tenants in common may sell their interest in the property independently of the other owners; joint tenants may not.

Answer 7

God luck with that one! i did the same thing with 3 friends. We were all best friends. But after 2 months, we ended up hateing each other! Now we are okay...cause we dont livetogether. watch out who you are moving in with.

Answer 8

With home loan,take your money together,ask your other friends or family members or... to help you.

Answer 9

Ask a lawyer.

Answer 10

yes, but don't. Borrow the money from them and let them live with you. Anything but co-own. ANYTHINGH!!!!!