Hi all,
Look forward to reading your thoughts,
We (my hubby and I) are considering buying a property in partnership with my mother.
She has been considering buying an investment for some time but is struggling with the workload of research and keeps putting it off. We have one subdivision done and are keen to do another. We have struck borrowing difficulties (in another thread). To keep the deal alive we need a partner.
We have not yet spoken with our solicitor so these are purely my thoughts.
We have discussed the following:
I know that our solicitors will have much to say but we would like to reach general agreement amongst ourselves before approaching the solicitors to keep costs down.
What have I forgotten? We need the contract to be fair and reasonable to all sides. It needs to meet the worst case scenarios (of death/disablement/relationship breakdown). It needs to be patently fair to my mum to minimise the chances of dispute between myself and my siblings especially in the case of my mum becoming ill and my sister (her medical power of attorney) stepping in.
We have a good relationship, none of us is particularly money hungry, we are all solvent and have good insurance etc. My mum is an intelligent middle aged independent woman and is capable of making her own decisions. We are all aware of the risks of property investment.
Look forward to reading your thoughts,
We (my hubby and I) are considering buying a property in partnership with my mother.
She has been considering buying an investment for some time but is struggling with the workload of research and keeps putting it off. We have one subdivision done and are keen to do another. We have struck borrowing difficulties (in another thread). To keep the deal alive we need a partner.
We have not yet spoken with our solicitor so these are purely my thoughts.
We have discussed the following:
- Title arrangement Tenants in Common
- % of ownership (50% mum, 25% me, 25% hubby)
- Division of costs (50% mum, 50% us)
- $ amt of costs which must be agreed in advance by all ($500) option to change this amount by agreement
- Allocation of profit (50% mum, 50% us) paid out on receipt
- 90 days notice to other party of intent to list for sale
- Right of other party to buy out at market value
- Market value to be determined by the aggregate of 2 licensed valuations in case of dispute
- Licensed valuer to be paid for 50% each by both parties
- In case of death of either party - purchase rights to go to the other party as first option
- That we will use licensed PM appointed on agreement by both parties to manage the property that this clause can be waived by agreement
- That if either party wishes to live in the property market rent as determined by a PM will be paid (apportioned by ownership)
I know that our solicitors will have much to say but we would like to reach general agreement amongst ourselves before approaching the solicitors to keep costs down.
What have I forgotten? We need the contract to be fair and reasonable to all sides. It needs to meet the worst case scenarios (of death/disablement/relationship breakdown). It needs to be patently fair to my mum to minimise the chances of dispute between myself and my siblings especially in the case of my mum becoming ill and my sister (her medical power of attorney) stepping in.
We have a good relationship, none of us is particularly money hungry, we are all solvent and have good insurance etc. My mum is an intelligent middle aged independent woman and is capable of making her own decisions. We are all aware of the risks of property investment.
