Whether you are both first-time buyers or purchasing your first property together as a couple or with a friend or family member it is undoubtedly an exciting but daunting time. You may get caught up in picking the furniture and counting down the days until you pick up the keys, however, it is important to not just think about the exciting parts but to also think practically about the consequences of buying property jointly with another person.
At Dallas McMillan we will always talk you through the different ways you can take title to your property if you are purchasing jointly with another person. From the outset, we will explain the process of purchasing a property and discuss our ‘Title to Property Guide’ with you to find the best option for you.
The ways that you can take title can impact matters in the future regarding what happens with shares of the property if one of the parties passes away, so it is important that you consider your options carefully.
Ultimately, you will have the choice of the following options which will be incorporated into the Disposition (the deed that transfers ownership into your names) upon settlement:
1) Pro indiviso shares: This means the property is shared either equally between you and the person you are purchasing the property with or in unequal shares and to your respective assignees and disponees. In the event of you choosing this option without the survivorship clause (see below) it is essential that you both make Wills (if you do not already have them) so that you can choose who title should pass to in the event of your death.
2) Survivorship: This option sees you each take the title equally (or in unequal shares should you so wish) between you and to the survivor. If such a clause is inserted in the Disposition, the title would pass automatically on the death of one title holder to the surviving title holder without any other legal process or documentation being required. When the title contains such a provision this can only be removed from the title by joint written agreement of you both. Aan alternative, which may be appropriate in some circumstances, is to incorporate a survivorship provision but to specifically state that this can be revoked by either of you individually.
If you are taking title in unequal shares where, for example, one party has contributed more to the purchase price than the other, we would also suggest that you have a Minute of Agreement drawn up. This legally binding agreement protects both parties’ interests in the property. The Minute of Agreement would narrate what was to happen if you were to sell the property and how the proceeds would be split or what would happen to the property in the event of a separation or divorce. Each Minute of Agreement is tailored to your specific needs.
If you are thinking of purchasing a property for the first time or for the first time with your partner or another person, Dallas McMillan can assist in explaining the process of purchasing a property jointly and discuss which is the best option for you. You may of course have already purchased a property and wish to review how your title is held. If so, please feel free to contact us. If you have any questions regarding purchasing a property or would like to obtain a quote for a purchase or adding a survivorship clause, please contact me by email This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone on 0141 333 6750.
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