Introduction to Buying a Starter Home

Buying a starter home can be a significant investment for couples, especially when rental options are limited. With interest rates and prices decreasing, it may seem like an ideal time to take the plunge. However, it’s essential to consider the implications and responsibilities that come with co-owning a property.

Weighing the Decision

Rita and her boyfriend are considering buying a starter home due to the lack of affordable rentals that allow pets. With stable jobs and strong credit, they may be in a good position to invest in a property. However, it’s crucial to approach this decision with careful planning and consideration.

Importance of a Co-Ownership Agreement

When unmarried couples buy property together, drafting a written agreement is highly recommended. This agreement should outline each person’s responsibilities, including financial contributions, maintenance, and what happens in case of a breakup. Having an agreement in place can make dealing with potential issues easier and less costly.

Key Components of a Co-Ownership Agreement

A co-ownership agreement should cover essential details such as:

• Financial responsibilities: Who will pay the mortgage, utilities, and maintenance costs?
• Maintenance and repairs: Who will be responsible for upkeep and repairs?
• Career setbacks or illness: What happens if one partner cannot pay their share due to job loss or illness?
• Breakup scenario: How will the property be divided or sold if the relationship ends?

Benefits of a Co-Ownership Agreement

Preparing a co-ownership agreement can help set the couple up for success by ensuring they are on the same page. It can also prevent minor disputes from escalating into full-blown legal battles. Adding a requirement for mediation before a lawsuit can be filed can often resolve issues amicably.

Considerations Before Buying

While drafting an agreement may not be the most enjoyable task, it’s a crucial step in the home-buying process for unmarried couples. If conflicts arise during this process, it may indicate that the couple is not ready to buy a home together.

The Role of Mediation

In case of disputes, having a co-ownership agreement in place can make resolving issues easier and less expensive. Mediation can be an effective way to prevent minor disputes from becoming lengthy and costly legal battles.

Conclusion

Buying a starter home can be a significant investment for couples. While it may seem like a good idea, especially with decreasing interest rates and prices, it’s essential to approach this decision with careful planning and consideration. Drafting a co-ownership agreement can help ensure that both partners are on the same page and can prevent potential issues from arising.

FAQs

• Q: Is it recommended to buy a starter home with my partner if we are not married?
  A: It can work out well with proper planning, including a co-ownership agreement that outlines each person’s responsibilities.
• Q: What should be included in a co-ownership agreement?
  A: The agreement should cover financial responsibilities, maintenance, career setbacks, and what happens in case of a breakup.

• Q: Can a co-ownership agreement prevent legal battles?
  A: Yes, having an agreement in place can make resolving disputes easier and less expensive, and adding a mediation requirement can often prevent minor issues from escalating.
  

  Q: My boyfriend and I want to move in together but cannot find an affordable rental that allows pets. With interest rates and prices inching down, we are thinking about buying a starter home. We both have good jobs and strong credit. My mom reads your column and suggested I ask if this is a good idea. Thanks! — Rita

  A: I cannot say if it is a good idea because I have not met your significant other, but with proper planning, buying property together can work out well.

  Whenever people who are not married to each other buy property together, I recommend drafting a written agreement that outlines what each of you will be responsible for and discussing what happens if you break up.

  This is especially important if one of you is providing more down payment than the other. Should your relationship sour, having an agreement in place will make dealing with the property easier and less costly.

  The process of preparing a co-ownership agreement can also help set you up for success. Among other details, you will need to discuss who is responsible for the costs and maintenance and what happens if one of you has a career setback or falls ill and cannot pay their share.

  While drafting an agreement is not fun (unless you are a lawyer), dealing with these potential issues in advance can make a big difference in your relationship by ensuring you are both on the same page.

  If you cannot cooperate well enough to draft an agreement, it strongly indicates that you may not be ready to buy a home together.

  If conflict cannot be avoided, having a co-ownership agreement will make resolving the dispute easier and less expensive.

  For example, adding a requirement to attend mediation before a lawsuit can be filed often helps prevent a minor dispute from becoming a years-long legal battle. Even if it becomes a lawsuit, it will be less expensive because the agreement will set out your rights and responsibilities, leaving your lawyers less to argue about.

  Board-certified real estate lawyer Gary Singer writes about industry legal matters and the housing market. To ask him a question, email him at gary@garysingerlaw.com, or go to SunSentinel.com/askpro. 

      <p>Originally Published: March 20, 2025 at 6:30 AM EDT</p>