Unmarried couples are becoming an up and coming group of home buyers. Last year unmarried couples made up seven percent of home buyers, according to the National Association of Realtors ®, making up the second-fastest growing buyer segment in America.
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 his/her share of the property goes to the surviving owner upon his or her death. They also should consider including joint tenancy with the right of survivorship in the deed. The parties 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. These complexities make it extremely important for unmarried couples considering purchasing to have the benefit of expert advice, including a real estate agent, a mortgage expert as well as a lawyer.