In your search for a home, there’s one option you may not be considering: others may also be looking for the same thing—and they’re willing to share the responsibility. However, there are a few things to remember before buying a house with someone else.

Here are a few housekeeping topics to remember when buying a home with someone else.

The Title and Deed

When you buy a house, you get a title. With co-ownership, it explains who owns the property, agreements to property ownership, whose name is placed in the public records under the title and negotiations. The title, while a document, is also more conceptual than a deed.

While the deed does much of the same, it is the physical embodiment of ownership over the property. Understanding the differences between the two is important and something your agent can assist you with.

When Sharing A Property With A Non-Spouse

When you’re sharing the property with a non-spouse, you have a few options. These include:

Tenant In Common

With this option, there’s no need for a 50/50 split. Buyers are allowed to own unequal interests in the property. If one of the co-owners were to pass away, their ownership would transfer to one of their beneficiaries.

Joint Tenants With Right Of Survivorship

Co-buyers own equal interests in the property as a 50/50 split. If you bought a home with two other people, you’d each have one-third interest in the home, and so on. If one tenant passes away, the remaining owners gain the deceased owner’s percentage of interest in the property. There’s no need for a court proceeding or probate, this happens automatically.

Both co-ownership options allow for an undivided interest in a property. All owners are co-owners as a part of the entire piece of property. If one owner wants to sell, for example, they would sell their tenancy or partial interest in the property.   

Create a Checklist

When you purchase a property with another person, you’ll want to ensure your agreement is iron clad—keeping strain off of the relationship can also make for a more co-habitable experience. Make sure both or all parties agree to terms by doing the following:

• Create a co-ownership agreement

• Clarify who owns what percentage

• Decide who pays the ongoing expenses

• Give options if any owners want out in the future

Bringing in a qualified attorney is a great way to craft a concise agreement. Sit down with all of the potential owners and go over the agreements. Once terms are reached, ensure everyone has a copy of the legal agreements and contracts.

While sharing a property purchase can reduce your debt, it’s important to make complete agreements and understand whether the decision makes sense for all parties involved. If it does, it’s a very viable way to split home buying costs and move in to your own space.