Safety When Buying

Safety/Legal

Once you have found someone to buy with, it is very important that you are aware of all the legal information you might need before you enter into the house buying process.

Initial Considerations

When thinking about buying a property with someone else, whether to live in or as an investment, it is important to be very upfront with the person you are planning to buy with, discuss in detail what you are looking to gain from the shared-buying relationship, how long you are looking to own the property for, what your plans are for the future etc.

Commencing the search

When commencing the search for your home with your shared-buyer/s, it is essential that you both/all agree how any initial costs will be split - legal fees, mortgage arrangement fees, survey costs etc. By agreeing this from the offset and ensuring all parties have the relevant funds available it will reduce stress and any wasted time further down the line.

You can either ask your solicitor to draw up a contract for you, or you can draw this up yourselves. You need to ensure the document contains; your names, how the expenses are to be split and when any outstanding monies are to be repaid to one another - this should then be dated and signed by all involved, and everyone should be given a copy. (It is advisable that you consult with your solicitor whenever you are entering into an agreement.)

Declaration of trust

When purchasing a property with other individuals you will need a Declaration of Trust (also known as a Deed of Trust) - a document that is created between buyers and signed at exchange of contracts. It sets out legal rights over the property (what percentage of its value you each own), how the major costs of ownership are to be split and how the relationship between buyers will end.