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cjbrand · May 3, 2007, 06:13 AM

I am buying a house with my boyfriend... however, everything is 100% in my name. We've verbally agreed that we go in 50/50 and walk away 50/50.

I know this is an extremely slippery slope, considering everything that can go wrong... but I'm looking for a little advice in regards to protection.

Currently, he pays half of everything. But if something goes wrong, is there anything I can do to "force" him to continue paying half.

I realize that at the end of the day, the mortgage is in my name and it's my credit. But is there some kind of contract that we can sign that would "protect" me in the event there was a split?

A friend of mine gave me the following, however, I wasn't sure if this is the right verbage.

Partnership Agreement

The purpose of this contract is to outline the party’s rights and obligations. The subject of the contract is the purchase, upkeep, improvement and repair of the house and property at XXXX, Texas.
1. All house expenses and liabilities are to be split equally between the two parties; as will accrued equity.
2. Any expenses outside of usual living will need approval of both parties.
a. Usual living expenses include but are not limited to mortgages, taxes, insurance, maintenance, utility bills, attached appliances ,and repairs required to maintain the standard of living at time of purchase (example: air conditioner repair)
b. Outside the scope of usual living expenses included but are not limited to, improvements, large repairs (those not required to maintain the standard of living at time of purchase,) and additions.
3. Parties may sell their interest in the property only after offering the other party the right of first refusal (must give other party a chance to buy before seeking outside buyers.)
4. Any damage caused as a sole fault of one party will be that party’s responsibility alone. The other party will not be required to pay for damages.
5. In any case where a dispute is irresolvable, the property will be sold. The profits and losses will be split equally
6. A dispute is considered irresolvable when mediation and/or binding arbitration fails.
7. Both party’s waive rights to trial and agree to resolve any disagreement in mediation and/or binding arbitration or consider the dispute irresolvable.

LisaB4657 · May 3, 2007, 06:33 AM

The partnership agreement is the right idea but you should have it prepared by a real estate attorney rather than using a somewhat generic form of agreement. For example there should be penalties listed if one of the parties doesn't perform their part of the agreement. If your boyfriend stops paying his share of the bills then he should have to reimburse you for your costs.

cjbrand · May 3, 2007, 02:25 PM

Thanks for the advice. I'm just glad to hear that there is something out there that will give me, at the very least, a leg to stand on in the event something goes wrong. Thanks again!

LisaB4657 · May 3, 2007, 04:31 PM

My pleasure! Good luck and enjoy your new home!

ScottGem · May 3, 2007, 04:45 PM

Well there is something already in place. If he walks out on you, the property is in your name. With nothing in writing, you can sell the property and pocket all the proceeds. So In my opinion and agreement such as this actually benefits him more than you.

If you do have such a document drawn up. The penalties go BOTH ways.

LisaB4657 · May 3, 2007, 04:47 PM

Scott, the property may be in her name but she's counting on him to pay half the bills. If he walks out she may own the property but she may have trouble paying the bills, which could mean damaged credit and foreclosure before she can sell the house.

ScottGem · May 3, 2007, 05:49 PM

Lisa, That is clearly a risk, but it's a risk either way. If he walks out, agreement or not, she will have to go after him for the money. And that may take time which could also mean damaged credit and foreclosure.

I think a formal agreement is a good idea. I just feel that everything being in her name gives her the upper hand.