What are the steps to purchasing real estate with a friend?

Answer 1

both jr and new york have good answers. why? because no matter how many things you think of to put into your partnership agreement, there is always some odd cost or task that neither or both of you want to undertake. they you fight. people's behavior is almost 100% emotional, not logical. if you do not separate your interpersonal relationship from a business relationship, you will end up as bitter enemies.

the other thing you must do is determine what manner you will hold title, so consult a real estate attorney:

1. joint owners (most married people take title like that): if one dies, the entire ownership goes to the other;

2. tenants in common (most partners take this form): each one of you can basically do what he wants with his portion of the real estate. for example, while you yourself live in it and half own it, your partner may rent his 50% portion. is that viable for you? talk to a real estate attorney, because it is a little more complex than this, too; or:

3. tenants by the entirety (which many people do not even know about): this is more like joint tenancy, but say you accumulate a ton of debts, but your partner stays solvent and invests his money wisely, so he becomes a trillionaire. well, your creditors will not be able to place a lien against the real estate to collect your debts. and visa versa.

be careful.

Answer 2

The accumulated curiosity could be some thing bizarre to the way you had been purchasing the estate and your truly property agent would not have had any rationale to grasp that you just had been clearly simply paying the precept and letting the curiosity accrue. You must have checked together with your loan corporation approximately the repay earlier to directory the estate. When each events have signed the "Option to Purchase" you've founded a binding and authorized agreement. Failure to participate in or convey out the phrases of the agreement by way of one of the crucial events is regarded breach of agreement and you'll be sued for damages by way of each the customer and the truly estates agent.

Answer 3

Step 1 create a contract defining the fiscal and labor responsibilities, length of time before resale, and how to split up the proceeds or how to pay of the loss if the market goes down. Once the relationship is defined the rest is easy.

Answer 4

get it in writing....how much you own(50/50), and do "both " of you have to agree on a sale and when and why that sale should occur and the dispersements will be proportional to the percentage on monies invested. Also whether spouses can make any claim on this property.....and what if you find minerals on the land, decisions to be made, ALL OF THEM, SOME OF THEM, ANY OF THEM FOR STARTERS.

Answer 5

Don't, such purchases with friends end up badly.