Daily Real Estate News | August 8, 2008
Unmarried couples made up 7 percent of home buyers last year, according to the NATIONAL ASSOCIATION OF REALTORS®, making up the second-fastest growing buyer segment.
Such arrangements make sense in that there are two people contributing to the down payment and monthly expenses, and both parties can take advantage of the tax benefits of homeownership.
However, there are numerous factors that an unmarried couple must consider before finalizing the purchase, such as a plan in case one owner dies or wants to sell.
Experts recommend that each buyer have a will stating that their share of the property goes to the surviving owner upon his or her death, but they also should consider including joint tenancy with the right of survivorship in the deed.
They also must understand that obtaining a mortgage requires full financial disclosure, meaning that their past credit histories will be out in the open. Moreover, buyers must understand that in the event of a breakup, the mortgage must be refinanced for it to be removed from one's credit report.