What Is a Partnership Mortgage?
Partnership mortgages, commonly know as "real estate partnerships," occur among people who intend to invest in real estate together. This type of mortgage can be for a home loan, business asset or investment. Partnership mortgages reduce financial risk for the individuals or group involved. These loans are based on the combined credit scores of couples or individuals. Another name for a partnership mortgage is a "joint mortgage."
Other People Are Reading
-
Financial Responsibility
-
All parties invloved in the purchase of a property are responsible for the loan. A partnership mortgage holds all applicants responsible for the repayment of the loan. The payment history of the loan is applied to all applicants involved in the purchase. If either person fails to make payments on time, the other can be held liable for repayment of the loan.
Deed Record
-
Partners are to be aware of how the deed is recorded. Applicants involved in a partnership mortgage should be aware of how the deed is recorded. Married couples have joint survivor-ship. When the deed is recorded as a joint survivor-ship, the death of one partner returns sole ownership to the surviving partner. However, a joint tenants in common deed applies to partners who want to possess equal share of a property. In this case, if one partner passes, the portion of ownership would not transfer to the surviving partner.
-
Real Estate Attorney
-
When purchasing real estate, always obtain legal representation. Hire an experienced real estate attorney when doing a partnership mortgage. Your attorney will prepare a partnership agreement for you and your partner to follow. Both parties must read, understand and sign the document before any real-estate transactions can be made.
-
References
- Photo Credit house image by hans slegers from Fotolia.com partners image by Svetlin Rusev from Fotolia.com signing a contract image by William Berry from Fotolia.com young lawyer image by Alexey Stiop from Fotolia.com
