In real estate it’s not uncommon for unmarried couples to buy a home (together). Here are the 3 most common ways most people take title.
#1.Tenants by the entirety: This is for married couples, with this option you both equally own the property which is common between husbands and wives. To be politically correct I should not only say husband and wife, it could be husband and husband or wife and wife. This option allows the survivor to inherit the property if something should happen to the other owner.
#2.Tenancy in Common: You own a percentage of the property. For example, you may own 30% and your significant other owns the other 70%. If something happens to one of you, the ownership will transfer to whoever is identified in that persons will. If there is no will ownership goes to the next of kin.
#3. Sole Ownership: There are many reasons to choose this option but typically it’s because one of the buyers may have poor credit or financial problems that would hinder the couple’s ability to get a loan. After closing all parties can be added to the title.
Based on the 3 options above you now have some tough decisions to make. If you’ve watched Dateline on NBC you already know with the first option when one spouse inherits everything after the other spouse passes on some people will use this to their advantage. It actually happens so often Dateline could do a weekly series on this. With option #2 your chances of meeting an untimely demise by your significant other are reduced since they have no financial interest. Why do I like option #3? It is your best option for never becoming the main character in a Dateline story.
