Time to Buy! Investors are Making Their Moves While Able Buyers Sit on the Fence~Real Estate Attorney Nancy Chillag's comments regarding Co-Buyer Agreements (or, lack thereof)
When do the "what-ifs" multiply exponentially?
The number one mistake made when negotiating a residential real estate transaction is when participants lack understanding of the responsibilities of all of the players. This is even more true when non-married, co-buyers are purchasing a property. That's when "what-ifs" just multiply exponentially.
Proper Planning Prevents Perplexing Problems
Real estate attorney Nancy Chillag is an expert on agreements between co-buyers. "Unfortunately," she observed, "I see them when they (joint-ownerships), go bad, more than I see them upfront."
The Cart In Front of the Horse
She gave the common example, "A lot of times people will decide,...let's go buy a rental property. They purchase it, and, something goes wrong several years down the road. And then they contact an attorney." Don't Try This a Home
Only real estate attorneys experienced with agreements between co-buyers should be consulted. Many times one party will initiate the agreement while the others will have another real estate attorney for review and discussion. Chillag advises, "When you decide to buy, see an attorney at that time, understand what the risks are, and then move forward."
Penny Wise and Pound Foolish
Whether co-buyers are friends, family or colleagues, an agreement is absolutely essential. The attorneys fees paid up-front creating an agreement, are a fraction of the legal fees each litigating co-buyer will pay when an agreement is absent and the partnership goes sour.
Post content excerpted from Kapowich on Real Estate ~ Program # 111
Pat Kapowich, "Negotiating Smooth Transactions Throughout The South Bay" SiliconValleyBroker.com