If you are buying a property jointly, whether this is with a friend, a partner, a family member or even a spouse, you should consider drafting a Minute of Agreement that adequately reflects the financial contributions each person is making.
A Minute of Agreement is legal document drawn up between two or more parties in the presence of their solicitors, without the need for formal court action.
There are advantages of buying a property with someone else, particularly as it allows you to get a foot on the property ladder if you can't afford to buy a home on your own. However, there are also disadvantages you need to consider and prepare for.
What happens if one person wants to move out? Or one person loses their job and can no longer afford to make mortgage repayments? Or if the relationship breaks down? You should also think about what you would want to happen to your share of the house if you died. Who would you want to leave it to?
All of these points should be considered and documented in a Minute of Agreement between the parties right at the outset. When you come to sell the property, or in the event of the relationship (or marriage) breaking down, parties often are aggrieved that nothing has been minuted regarding the initial contribution, even if subsequent mortgage payments have been made equally.
Get in touch with McDougall McQueen if you are looking to buy a property jointly and want to ensure you are protected.