BUYING A HOUSE WITH YOUR PARTNER? WHAT YOU NEED TO KNOW
A lot of explanations and unstated facts about what couples need to know about owning or purchasing a house together have been published and this information that is void of truth have misled a lot of unsuspecting or ignorant readers especially innocent people who want to make the right decision before entering an agreement that could either ruin or integrate the future of their marriage.
It’s needful to state that every country has its laws and regulations which governs the decisions of couples whose plan is to own a house together. For instance, A husband and the wife are two separate human beings each with the full legal capacity to own or purchase property separately or jointly as they may desire. This means that there is no law in Nigeria that bars a husband and his wife from joint purchase or ownership of property.
In other to appreciate this piece, it is important to understand what Joint ownership entails. Joint ownership as the name implies is a form of ownership of the same property by two or more persons, in this case, a husband and wife.
Under joint ownership, there are 2 options you can choose. These include: Joint tenancy with survivorship right and tenancy in common.
Joint tenancy with survivorship right: With this type of ownership, all of the owners hold an equal right to the property. In other words, any owner can withdraw the funds from an account without the knowledge or permission of the other owners. However, with jointly owned real estate, in most states, the property cannot be sold or mortgaged without the consent of all of the owners. When one joint owner dies, ownership of the property automatically passes to the surviving joint tenants without the need for probate.
Tenancy in common: With this type of joint ownership, each individual “tenant in common” owns a specific percentage of the property and can withdraw, mortgage, or sell his or her own separate piece of the property. When a tenant in common dies, his or her share of the property passes to his or her own beneficiaries and not to the surviving tenants in common.
READ: SINGLE FAMILY VS. MULTI-FAMILY RENTALS:
Other fundamental factors you need to consider include:
Identifying your priorities: Laying out exactly what each of you wants in the home, and what you’re willing to compromise on, will make the search infinitely easier. Be open and honest with each other about the commitment.
Agreeing on how you’ll share ownership: There are two options to consider: “joint tenants,” which means you share equal rights to the entire property, or “tenants in common,” which means you both own a share of the property.
Seeking professional: An advice from a financial planner and/or lawyer about ways to structure ownership and loans.
Getting your will in order: Especially if you decide to share ownership as tenants in common, your share of the house will immediately go to your next of kin upon your death, not your partner.
Trying to avoid impulsive and emotional decisions: This a very important especially if the property you are trying to jointly purchase is for rental purpose. To make a profit from rental properties, you have to be economically-driven.
Ultimately, our experts recommend seeking professional advice from a financial planner and lawyer to suit your individual circumstances. If you are thinking about buying somewhere with your partner, that’s great and still a reason to be excited, but go and talk to a lawyer about it just so you know what could potentially happen and what your options are.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
To know more about Middlechase Property Limited, click on the link below: Middlechase Property Limited or call 08186577504.
