What is a Joint Ownership Agreement?
It is important that if you are buying a house with someone that you agree the best joint ownership agreement.
We frequently talk to people who are buying a house together and one partner is putting in more equity that the other, or the couple are not married, or one of the couple has children from a previous relationship.
In society we live in today, things are not always the typical two-point-four family. Therefore more often than not this conversation gets mentioned when people are considering buying a house together.
Joint Ownership Agreements
When buying a house with someone there are two options we discuss with you;
- Buying as Joint Tenants – this assumes that both you and your partner own the property equally and if one of you dies the entire ownership would pass to the surviving partner. This also assumes that if a dispute arose between you and the property was sold, the sales from the property would be divided equally.
- Tenants in Common – this allows you to define what interests you each have in the property. This assumes that if one of you dies the property does not automatically go to the survivor; rather the share will be dealt with through the deceased’s Will.
Due to the rise in property prices nowadays and the difficulties first time buyers’ face getting onto the property ladder; it is not uncommon nowadays for parents to provide capital for their child to purchase their first home.
Many cohabiting couples still wrongly assume that they have some protection as a ‘common law spouse’ especially if they have been living together for some time. However there is no such thing as common law spouse. Even if a couple have children, people need to make sure they fully understand the legal ownership of their property.
We can help
It is important to remember that this area of law is based on strict legal principles rather than fairness and previous living arrangements; therefore we strongly advise that you seek legal advice at the start of the conveyancing transaction.
At Ringrose Law, we will explain all of this to you when you are going through the conveyancing process. Our team advise on the best course of action we think you should take.
For further information on joint ownership agreements, contact our team of conveyancers across Lincolnshire and Newark for further advice.