With the cost of living rising in many urban centers,there is growing frustration amongst an entire generation of potential buyers who can no longer afford to purchase their own homes. As a result, more and more are considering joint ownership between unattached singles, and even unrelated families. Before leveraging such an arrangement, buyers need to pay close attention to the ramifications of specific terminology in their purchase agreements. For example, “Joint Tenants” and “Tenants in Common” have distinctly different legal definitions which could impact the intended arrangement, including the percentages of ownership, the responsibility for mortgage payments, and the upkeep of maintenance. Furthermore, to avoid unnecessary conflict in the event of a dissolving partnership, the rights of individual participants must be clearly defined up front. What are the partners’ rights in the event of a sale or buyout? What happens if a partner dies and bequeaths ownership to a third party – or a living partner decides to rent out part or all of the premises? Obviously, joint purchasers need legal guidance. Still, the trend of such ownership is undeniable, as it makes homes affordable to more buyers. It could even affect how sellers market their properties, especially if a property has the potential for two separate and distinct living arrangements under one roof.
