Pre-Purchase Considerations - Part 3

The Denninger Report  - by Gini Denninger

Both need to be clear on their position in the ownership of the house. What is it that each partner expects regarding home ownership? Does one partner legally own the house and the other does not? If one partner does not legally own the house, are they expected to contribute equally financially and, notwithstanding that their name is not on the deed, do they expect to be treated as an co-owner? Does one person have the power to evict the other from the home?

Some of this is hashed out while deciding how the parties will named on the deed. Most married couples own a home together by “Tenancy by the Entirety.” This means if one spouse dies, the other, automatically, by operation of law, becomes the sole owner of the property. If there is a split, divorce laws govern and judges decide the disposition of the property considering all facts and circumstances.

Unmarried couples can chose to own real property as “Joint Tenants with Right of Survivorship” This type of ownership affects the same result as if the property were owned by a husband and wife. Another option is to own the property as “Tenants in Common.” If one partner dies, their share is passed through their will or if there is no will, according to state law, “intestacy.” This is the least secure position for a surviving partner to be in since unrelated parties have no rights of inheritance if there is no will and most young couples don’t have wills. The surviving partner could be forced to sell their beloved home by their new co-owners – the estate of the deceased partner or worse still, have to be co-owners with the deceased partner’s parents or siblings. Sadly, often attorneys find themselves having the discussion of ownership and what it entails when the couple attends the closing.

Based upon the “new normal” of relationships in our society, nothing about a relationship may be assumed when different surnames are used on purchase contracts and loan applications. For example it is now completely normal for a woman to continue to use her maiden name after marriage. To make inquiries about the purchasers’ marital status based on different surnames might be perceived as rude, judgmental and, possibly, discriminatory.

Couples need to broach these difficult questions prior to putting an offer in on the home of their dreams, to prevent the situation from turning into a living nightmare down the road, should the worst occur.

The best thing couples can do is to prepare themselves in all aspects of their future home ownership. Knowing the answers to these questions is important as it will keep the relationship harmonious, by the very fact that both partners know what the expectations are. Happy Relationship - Happy Home!



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