I put $200,000 toward a down payment for a condo unit with my boyfriend. He is on the title, but not on the mortgage. How do I protect my equity investment now?

Expensive Intricate,

File this under “R” for “real estate” or “R” for “ruh-roh.”

If he is on the title, he ought to be on the mortgage loan. It results in an imbalance of power in just the property ownership agreement. Not only have you invested $200,000, but you are shouldering all of the threat. If your partnership with this male sours, and he walks away, you will be still left to make the payments to prevent getting rid of your dwelling and detrimental your credit rating ranking, not him. 

What is far more, if you pay back the home loan off, he will however be entitled to his 50% share of the house should really you provide it. It’s a win-gain for him. You also took $200,000 of your personal funds and commingled it in a shared asset. It’s a cautionary tale and a textbook example of what to stay clear of when getting a assets with a lover, specially a person to whom you are not married.

I’m assuming your associate experienced a decreased salary and/or credit score rating and, for that purpose, you made the decision to place your have title on the mortgage. It is an uncommon arrangement, but just one that must — while your connection is healthy and powerful — be tackled. If you place him on the home loan, you would have to refinance, and charges have likely risen because your order.

A cohabitation agreement is a intelligent transfer for single partners, specifically individuals who have a property. It is a agreement — a de facto prenuptial agreement. You both concur to the terms and situations: What comes about to the household if you split up or one particular of you predeceases the other? Do you promote the home and split the proceeds 50/50?  Who, for instance, is your health care proxy?

You should really specify in that settlement that you the two get again what you invested in the property, if your boyfriend has not contributed to the down payment. You can body the dialogue about the cohabitation arrangement all around your living condition, and include your place on the home you jointly personal. As often, have an legal professional critique anything just before you sign.

I would like you many content years — collectively — in your new house.

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