Buying Property Together

Purchasing a home and moving in together is a cause for celebration for a couple. However, it is important to be aware that the situation could potentially become complicated in the unfortunate event that the couple subsequently breaks up. We strongly advise couples purchasing a home together to seek legal advice and enter into a co-ownership agreement at the same time that they purchase the property.

While it may seem pessimistic, it is the reality that not all relationships succeed and it is wise to have an agreement in place that will protect each party if the relationship ends. This will avoid the stress and unpleasantness that may ensue where one party wishes to sell the property while the other party does not and could avoid costly litigation where the parties cannot come to agreement.

Typically, a co-ownership agreement will set out:

  1. That both parties have agreed to buy the property.
    b. The total cost of the overall transaction inclusive of both the purchase price paid as well as the other costs associated with the transaction.
    c. The amount of money that was borrowed (typically by way of a mortgage).
    d. What proportion of the difference between the total cost of the purchase and the mortgage that each party has contributed.
    e. The steps that are to be taken regarding the sale of the property should the relationship end, where one party wishes to sell the property while the other party does not.
    f. The share each party will receive from the proceeds of the sale of the property.

Co-ownership agreements are not restricted to co-habiting couples and should be put in place by any persons who are purchasing a property together (for example friends or siblings) to define the legal basis of what is essentially a financial relationship between them.

In conclusion, if you are purchasing a home together, having a co-ownership agreement in place may avoid potentially costly and unnecessary future litigation. It is important to also be aware that a couple who move in together could eventually come within the scope of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act, 2010 if they do not address these issues through a separate Co-Habitation Agreement at the outset.

Contact us today to discuss your requirements.

Feel free to contact us in confidence at any stage to discuss your legal requirements
and one of our experienced and friendly team will assist you.