If you’re buying a beach house with friends or family, things can go brilliantly well. But sometimes things can go very badly! Protect yourself and those close relationships by taking these points into consideration:
- Think carefully about the ownership structure. Are you all going to own the property in your personal names? Is anyone in business and needing to protect their assets – their share of the property could be vulnerable to a claim from creditors, so you might want to consider using a trust? What if the worst happens and one of your co-owners dies – how will you feel about their children inheriting their share of the house? Is it going to be held in a partnership?
- Enter a property sharing agreement. If things don’t go according to plan, it is useful to have a contract that clearly sets out what is to happen if you don’t want to co-own that house anymore. This might be because you are no longer getting along, or you need to get your money back out of the house, or you’ve broken up with your significant other and need to sort out relationship property issues, or any number of other reasons. The property sharing agreement should also include when/how the co-owners can use the property, whether their friends or family can use the property, and how the expenses relating to the property are to be shared and paid.
- Get tax advice. Get along to your accountant, there could be some unexpected tax complications.
We’re open again from 6th January to help you with your property purchases and conveyancing needs. We can also help you with ownership structures, negotiating property sharing agreements, succession planning, and any disputes that might arise.
Wishing you all the best for the Summer holidays.
Joanne Dickson