When an unmarried couple decides to purchase property together, it`s important that they establish a property agreement. This legal document outlines the rights and responsibilities of each party in the event of a breakup or other unforeseen circumstances.
First and foremost, the property agreement should clearly outline each party`s ownership percentage in the property. This is particularly important if one party contributes more financially to the purchase or upkeep of the property. The agreement should also address how expenses such as mortgage payments, property taxes, and repairs will be divided.
Another key component of a property agreement for unmarried couples is a plan for how the property will be divided in the event of a breakup. This can be especially tricky if both parties have contributed equally to the property and there is no clear agreement in place. The property agreement should outline how the property will be sold or divided if the couple should split up.
Additionally, the agreement should address what will happen if one party wants to sell their share of the property. Will the other party have the first option to buy them out? Will the property be sold on the open market? These are important questions that need to be addressed in the property agreement.
It`s also worth considering other scenarios that might impact the property, such as one party passing away or becoming incapacitated. The property agreement should outline how the property will be handled in these situations.
While no one wants to think about the possibility of breaking up or other unexpected events, having a property agreement in place can help prevent legal disputes down the road. It`s a way for both parties to protect their interests and ensure that their investment in the property is secure.
In conclusion, a property agreement is an essential document for unmarried couples who are purchasing property together. It outlines ownership percentages, expense contributions, and plans for the property in the event of a breakup or other unforeseen circumstances. By having a property agreement in place, both parties can have peace of mind and protect their investment in the property.