Agreement between Unmarried Individuals to Purchase and Hold Residence as Joint Tenants with Right of Survivorship
Definition and meaning
The Agreement between Unmarried Individuals to Purchase and Hold Residence as Joint Tenants with Right of Survivorship is a legal document that enables two unmarried individuals to jointly own a property. This agreement establishes that both parties will hold the property as joint tenants, meaning that each owns an equal share and has rights to the whole property. Upon the death of one tenant, the other automatically inherits the deceased's share, ensuring seamless transfer of ownership without the need for probate.
Who should use this form
This agreement is ideal for unmarried couples or partners who wish to jointly purchase a residence. It is particularly suited for individuals who want to ensure that their shared investment is protected and that each person retains rights to the property even after the death of one owner. Additionally, it is essential for those who want to avoid complications related to inheritance laws that apply to married couples.
How to complete a form
Completing the Agreement between Unmarried Individuals to Purchase and Hold Residence as Joint Tenants with Right of Survivorship involves several key steps:
- Begin by entering the date of the agreement at the top of the document.
- Fill in the names and addresses of both parties involved in the agreement.
- Clearly describe the property in question, including its address and any relevant details.
- Detail the intentions regarding joint tenancy and the right of survivorship.
- Both parties should sign and date the agreement in the presence of a notary public to ensure its legality.
Key components of the form
The critical elements of the agreement include:
- Identification of the Parties: Names and addresses of each individual entering the agreement.
- Description of the Property: A detailed description of the real estate being acquired.
- Joint Tenancy Clause: A section declaring that both parties will hold the property as joint tenants with right of survivorship.
- Financial Responsibilities: Outline of how costs associated with the property will be shared.
- Conditions for Sale or Transfer: Procedures for any future sale or transfer of interest in the property.
Common mistakes to avoid when using this form
While completing the agreement, be cautious to avoid the following common pitfalls:
- Incomplete information: Ensure that all names, addresses, and property descriptions are accurate and complete.
- Inadequate signatures: Both parties must sign the document in the presence of a notary public.
- Ignoring state-specific laws: Be aware that local laws may affect the enforceability of the agreement, and it may be necessary to consult with an attorney.
What to expect during notarization or witnessing
Notarization is a critical step in finalizing the agreement. During this process:
- The notary will confirm the identities of both parties through valid identification (such as a driver's license or passport).
- Both parties must be present and sign the document in front of the notary.
- The notary will then affix their seal and provide a statement confirming that the signatures were witnessed.
This process ensures that the agreement is legally binding and safeguards against future disputes.
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FAQ
Because mortgage lenders treat married couples as a single entity, these couples can qualify for sizeable loans with good terms and rates as long as one partner has a good credit history. However, lenders treat unmarried couples as individual home buyers.
Yes. Many lenders allow two families to combine their respective incomes in order to jointly purchase a house. Both households will need to meet the minimum qualifying loan requirements, which may vary lender to lender. Lenders may also require both families to hold equal ownership rights of the house.
Unmarried couples will apply for a mortgage as individuals. This means the partner with the stronger financials and credit score may want to purchase the home to get better mortgage terms and interest rates.Some lenders may allow both parties to apply for a mortgage together.
You can either follow the legal procedures that apply in your statetypically this means the court will order the property to be sold, and the net proceeds (after paying mortgages, liens, and costs of sale) to be dividedor you can reach your own compromise settlement.
Yes. Many lenders allow two families to combine their respective incomes in order to jointly purchase a house. Both households will need to meet the minimum qualifying loan requirements, which may vary lender to lender. Lenders may also require both families to hold equal ownership rights of the house.