How to Buy a House With Family

While buying a house with another party will help with the finances and such, buying with family makes it a bit more challenging. There are certain things all parties need to take into account prior to purchasing. This not only protects each person's wants but also your relationship.

Difficulty: Moderately Challenging

Instructions

1. Know what you want/can live with/can't live without. Each person should have a clear outline of what they are looking for in a place and what's negotiable. If you both agree on everything, then great, but if not, both parties will have to make compromises and before you start, it's a good idea to know what you can and can't live without.

2. Write a list of factors to consider while looking for a place (i.e. number of bedrooms, layout, backyard, etc.). This list should include everyone's choices as to what they are looking for in a place. This will help narrow down your selection and ensure that when you find a place, it has what everyone was looking for.

3. Write up 'contract' prior to purchasing a place. You can either get a lawyer to do this or write up one between the parties and sign and agree to follow it. The important part here is to write it up BEFORE purchasing a place. If you write it up afterwards, it won't be as effective. For example, living arrangements. If it was decided prior to even looking for a place that the house would be split top to bottom then that's the type of place you'll be looking to purchase. But if there's no clear rule on living arrangements, it'll be hard to narrow down what type of dwelling you're looking for and if you find a place that can't be divided equally, it'll just cause more stress and arguing.

Tips & Warnings

• Make sure to add in your contract what will happen if things don't work out (i.e. will you have to sell the house and if so, how will the profits be split).
• If, after everyone moves in and a certain time frame has passed, it's not working out, move or sell. Do not let it come between you and your family. There is more than one house to choose from but only one family in your life.
• If after move in and given time it doesn't work, move or sell. Do not let it come between you and your family. There is more than one house to choose from in your life but only one family in your life.

[MidniteWriter]

on 2/11/2009 Good steps, very concise!5*

[plvick]

on 2/11/2009 Nice.