Legal guidance
It is essential to take advice from an experienced solicitor before entering into any co-buying arrangement. There are several agreements that are advisable to have in order to protect all your interests in the property, should anything happen to any of the co-buyers for example if one of you dies or you decide to part company for what ever reason.
'Declaration of Trust'
Also known as a Trust Deed, this is a legal document that outlines the arrangements between co-buyers, such as how much each co-buyer owns of the property and how the property will be sold if necessary, for what ever the reason – fall out, death of a co-buyer etc.
'Co-Habitation Agreement'
Just for those co-buying property and intending to live together or share a holiday home. This document clarifies each co-buyer's financial responsibilities, who owns what, how the household will be run, what the ground rules are. It is a document that helps everyone know where they stand from the beginning.
'Will'
A legal document that expresses who you want to gift your estate (what you own) to when you die. If you do not have a will, 'Intestacy' (the government) will take responsibility and decide how your assets will be divided.
Other Issues / research – before purchase
If the property purchase is a house then there will be more legal issues and research to be checked out before the purchase. This process is known as conveyancing – a solicitor can carry this out for you.
Other forms of property, such as a vehicle, will need checks on them too, such as their previous ownership and history. Carry out credit checks on yourself (use a recognised company like Equifax or Experian) and ask your potential property partners to do the same, so you can all feel confident about your ability to afford the purchase. You may want to consider police checks with your local police force as a final precaution. All these checks have to be done individually; you can check yourself and share the information, you cannot check anyone else on their behalf.
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