Here is some partnership information which will help to get the discussion going for people thinking of a partnership situation.
We always recommend that you speak with an attorney to help you draw up an agreement before closing on a property. This will likely save you money and headaches in the long run.
These are some of the points that you should discuss.
Outline of Agreement:
- Transfer of Ownership
- Purchase Price between Parties
- Owner use of the home
- Determining weeks for use, or how you want to use property separately or together…Who gets the use of the master bedroom?
- Rules for Renting
- Rules for Pets
- General Maintenance Expenses and Responsibilities
- Utilities and Monthly Bills
- Dispute Resolution
- How are regular expenses paid for? Utility bills, cleaning, repairs, food, supplies, etc.…
- Unforeseen Expenses
There are varies ways to hold title to a property and the laws vary by state. In Colorado you can take title as Sole Ownership, Joint Tenants and Tenants in Common. See descriptions below:
Sole Ownership:The simplest way to hold title to a property is called sole ownership. Sole ownership means that one person alone holds title to the property. This is most often used by persons who are single, but a married person can also choose sole ownership if his or her spouse is willing to sign a document renouncing any rights to the property.
Joint Tenants: Joint tenancy with right of survivorship means two or more people hold title to the property together. If one person passes away, the ownership automatically defers to the remaining owner(s).
Tenants in Common: Tenancy in common allows multiple owners to each own a percentage of a property. In this form of holding title to the property, an owner can sell his or her percentage share of the property at any time. Owners also can will their share to their heirs. The property does not revert to the other owners automatically.