Buying A Home As Tenants In Common

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There’s no reason to miss out on the advantages of homeownership simply because you’re not married. You can partner with anyone to buy and occupy a home, including a significant other, best friend or close relative. If you do things the right way from the beginning, you’ll build on a great investment as well as a treasured relationship.

According to, the first thing you need to do is disclose all finances with your future housemate, including salaries, debts, credit history and scores. One of you may not be able to contribute equally to the costs of owning a home. Further, a lender will use the weakest credit to determine how much money to lend you and at what rate because both of you are liable for the mortgage payments.

There’s a solution for unequal financial situation – you both can own title to a home as Tenants in Common. You may own 70% while your housemate owns 30%. Neither can sell the home without the other, but when you do sell, you’ll receive 70% of the proceeds. In the event of death, ownership only passes to the other tenant in common if so specified in a will.

Hire a real estate attorney to help you work out terms and percentages, and specify in a contract exactly who is responsible for paying for which items and in what percentages. Planning ahead will help prevent future disputes and give you both more confidence in your new home purchase.

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Posted in Homebuyer Advice, News.