Buying house with son [and his girlfriend]

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reggiesimpson
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

mortfree wrote: Sat Feb 09, 2019 6:08 pm
reggiesimpson wrote: Sat Feb 09, 2019 4:50 pm
Mortgage insurance may be another option. But as we are getting older and they are eager the time is now to get this show on the road. Thank you.
reggie
Again, what is this mortgage insurance you are referring to? I genuinely want to know.

I’d also caution that the more complex the arrangement, the more likely lawyers will need to be involved if things go sour. Perhaps the lawyer is seeing dollar signs by including the GF.

Finally, if everything works out you will never see your initial investment because you won’t be around. That should be your goal in all of this.
While i have never used it its an insurance that pays off the lender in case of the default of a mortgage.
Well i had to go by what the lawyer recommended and it certainly made a lot of sense to me. Another RE atty didnt bring this up at all so i didnt use him.
Yes i am fully aware we will never see our contribution again but doing it this way allows us to see this asset at work for my son and his family now not after we are dead. Its the best use of his inheritance that we can think of. Yes it is our goal. My mother and father did the same for me and i will advise our son to do the same for his children. Thank you.
reggie
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reggiesimpson
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

RetiredArtist wrote: Sat Feb 09, 2019 6:10 pm I have been a tenant in common in a residential property for decades. We finally got around to having a real estate attorney draw up a tenants in common agreement. It addresses many "what ifs". The attorney said the tenants in common agreement is based on general contract law. If disputes arise, legal action might be more problematic.
I gifted a partial down payment to my not yet married kid, and suggested a pre-nup. I think it was good for them to discuss what might happen in case of divorce, death, etc.
If you decide to take title as a tenant in common, ask your real estate attorney about the utility of a tenants in common agreement.
You said "legal action might be more problematic" do you mean its more problematic without the Tenants in Common Agreement? And yes i couldnt agree more that pre nup discussion is very important. They are both quite mature and and i dont see that as a major issue. Further, "utility of a tenants in common agreement" means what? Thank you
reggie
JustinR
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Re: Buying house with son [and his girlfriend]

Post by JustinR »

This is hilarious.

I'll need an update here every 3 years.

Also, will be waiting for the inevitable reddit post by OP, son, girlfriend, or random new owner the ex-girlfriend sold her share to, on /r/bestoflegaladvice
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reggiesimpson
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

JustinR wrote: Sat Feb 09, 2019 6:50 pm This is hilarious.

I'll need an update here every 5 years.

Also, will be waiting for the inevitable reddit post by OP, son, girlfriend, or random new owner the ex-girlfriend sold her share to, on /r/bestoflegaladvice
[/quote
If im still around.....lol.
letsgobobby
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Re: Buying house with son [and his girlfriend]

Post by letsgobobby »

Why do you need to protect the asset, and from whom?
RetiredArtist
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Re: Buying house with son [and his girlfriend]

Post by RetiredArtist »

Attorney said because real estate law addresses real estate, while contract law is general, the language covered by real estate law is is more generally agreed upon. Attorney was promoting condo ownership as being better, because it is covered by real estate law. As I understood it, tenant in common agreements are only covered by contract law.
I think a written tenants in common agreement that covers many possibilities is much better than no written agreement. It is analogous to having an estate plan. What happens if person A dies, person B remarries, person A's heirs want to sell, etc?
Note that I worked in the arts, not law--ask your attorney why a tenants in common agreement will be useful for you & your son.
PS- do a search for "tenants in common agreement" in your area, and you may find info posted by local attorneys.
Last edited by RetiredArtist on Sat Feb 09, 2019 7:12 pm, edited 1 time in total.
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reggiesimpson
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

RetiredArtist wrote: Sat Feb 09, 2019 7:01 pm Attorney said because real estate law addresses real estate, while contract law is general, the language covered by real estate law is is more generally agreed upon. Attorney was promoting condo ownership as being better, because it is covered by real estate law. As I understood it, tenant in common agreements are only covered by contract law.
I think a written tenants in common agreement that covers many possibilities is much better than no written agreement. It is analogous to having an estate plan. What happens if person A dies, person B remarries, person A's heirs want to sell, etc?
Note that I worked in the arts, not law--ask your attorney why a tenants in common agreement will be useful for you & your son!
Thank you.
reggie
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reggiesimpson
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

letsgobobby wrote: Sat Feb 09, 2019 6:54 pm Why do you need to protect the asset, and from whom?
Protect it from anyone. Its our sons inheritance and while we want to see him use it while we are alive we dont want litigation, divorce etc to jeopardize it.
reggie
Cossack1
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Re: Buying house with son [and his girlfriend]

Post by Cossack1 »

Girlfriends parents need a place to live due to their financial situation, or one of her parents dies and the other one needs a place to live. What is son gonna say when wife says "my mom needs to move into the MIL unit, it's our house"? One of the dozens or hundreds of scenarios you can't plan for or anticipate. Since you all have attorneys already, it won't be anything unfamiliar as you all sue and counter sue each other. But think of all the money you'll save not having to travel to visit your son or his future children, your grandchildren. There is some probability that it will all work out even after everyone signs the multitude of agreements, prenups, and other legal paperwork that any loving, caring family would have spent months hashing out in an attempt to predict all of the things that can go wrong. Good luck brother.
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Re: Buying house with son [and his girlfriend]

Post by junior »

I'm also confused at the reference to mortgage insurance.

I'm not aware of any type of mortgage insurance that protects your investment in the property or your son or girlfriend's equity.

It protects the lender if they have to foreclose and they are still losing money after they take your entire investment in the property.

It would not be a factor in the transaction you describe since your large down-payment should satisfy the lender that the transaction will be profitable if they foreclose on you.
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reggiesimpson
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

Cossack1 wrote: Sat Feb 09, 2019 7:17 pm Girlfriends parents need a place to live due to their financial situation, or one of her parents dies and the other one needs a place to live. What is son gonna say when wife says "my mom needs to move into the MIL unit, it's our house"? One of the dozens or hundreds of scenarios you can't plan for or anticipate. Since you all have attorneys already, it won't be anything unfamiliar as you all sue and counter sue each other. But think of all the money you'll save not having to travel to visit your son or his future children, your grandchildren. There is some probability that it will all work out even after everyone signs the multitude of agreements, prenups, and other legal paperwork that any loving, caring family would have spent months hashing out in an attempt to predict all of the things that can go wrong. Good luck brother.
Girlfriends parents are retiring soon and have a place already. If things get that bad we will work it out because thats what familys do for each other. Thats what his gf family did and thats what i and my wifes family did for each other when it was needed for other family members. We have one real estate atty. If my son goes with a prenup he will hire a family atty. Its not a matter of luck. Its a matter of doing your homework, getting the best advice and acting to make our goals come true. Thank you.
reggie
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Re: Buying house with son [and his girlfriend]

Post by roymeo »

"girlfriend" needs more definition these days as it's not the 1950's (or 1980's) anymore. How financially bound are they?
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reggiesimpson
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

junior wrote: Sat Feb 09, 2019 7:21 pm I'm also confused at the reference to mortgage insurance.

I'm not aware of any type of mortgage insurance that protects your investment in the property or your son or girlfriend's equity.

It protects the lender if they have to foreclose and they are still losing money after they take your entire investment in the property.

It would not be a factor in the transaction you describe since your large down-payment should satisfy the lender that the transaction will be profitable if they foreclose on you.
I have never used this type of insurance and i am not quite sure what you are asking. If the mortgage is paid off you still have your investment.....the house.
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reggiesimpson
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

roymeo wrote: Sat Feb 09, 2019 7:28 pm "girlfriend" needs more definition these days as it's not the 1950's (or 1980's) anymore. How financially bound are they?
He and she are willing to take a mortgage out together for the purpose of buying a house and starting a family. They will be married in the near future. Sounds like a pretty close relationship to me.
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Re: Buying house with son [and his girlfriend]

Post by Cossack1 »

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Mlm
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Re: Buying house with son [and his girlfriend]

Post by Mlm »

reggiesimpson wrote: Sat Feb 09, 2019 7:15 pm
letsgobobby wrote: Sat Feb 09, 2019 6:54 pm Why do you need to protect the asset, and from whom?
Protect it from anyone. Its our sons inheritance and while we want to see him use it while we are alive we dont want litigation, divorce etc to jeopardize it.
reggie
Your son is an adult. I'm sure that he can take the proper legal precautions to protect his inheritance. The prenup would protect his inheritance and a family trust would protect him in case of litigation. It sounds like you either don't have faith in his abilities or you want something in place to insure that they will be onsite caregivers in later years.
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

Cossack1 wrote: Sat Feb 09, 2019 7:32 pm Can a moderator close this topic. We are all wasting our time.
People keep asking questions so i answer them. Some are actually new and informative so i will answer. But i will only answer one more tonight as i was up till 2am last night deep in this discussion. See you all tmrw.
reggie
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Re: Buying house with son [and his girlfriend]

Post by reggiesimpson »

Mlm wrote: Sat Feb 09, 2019 7:33 pm
reggiesimpson wrote: Sat Feb 09, 2019 7:15 pm
letsgobobby wrote: Sat Feb 09, 2019 6:54 pm Why do you need to protect the asset, and from whom?
Protect it from anyone. Its our sons inheritance and while we want to see him use it while we are alive we dont want litigation, divorce etc to jeopardize it.
reggie
Your son is an adult. I'm sure that he can take the proper legal precautions to protect his inheritance. The prenup would protect his inheritance and a family trust would protect him in case of litigation. It sounds like you either don't have faith in his abilities or you want something in place to insure that they will be onsite caregivers in later years.
My son has lived out of state for 6 years and out of the house for 13 years. He is an adult who is and has been fully and gainfully employed for years. He brought up a prenup for the first time one week ago. Good news. But as i still hold the inheritance its my job to protect that money while its his job to protect his own money. Making this contribution is not a way to force either of our children to provide onsite caregiving. If we need nursing care we will go and get it. This is my last post tonight as i have been at this for 15 hrs. I will answer additional questions tmrw. Gnite.
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Re: Buying house with son [and his girlfriend]

Post by Flyer24 »

Wouldn’t a partial owner also be responsible for a shared portion of the ownership expenses? Are you going to pay part of the homeowner’s insurance and property tax? Are you going to pay part of the repairs and upkeep?
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Re: Buying house with son [and his girlfriend]

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