Georgia residents may believe that it is a good idea to buy a home with a friend or sibling. However, there are issues to consider before signing an agreement to purchase real estate with other people. For example, creditors could put liens on the home if another person in the group is past due on a loan payment or tax bill. Furthermore, everyone in the group should be realistic about how much they can afford to pay.
Everyone in the group should be ready to pay the entire mortgage if necessary. Anyone who is on a mortgage can experience the same credit consequences if a payment is late or not made at all. It is also a good idea to talk about who is responsible for utility and other payments related to the property. There should also be some idea as to who will be responsible for maintaining the home or for paying a professional to provide cleaning or maintenance services.
Selling the home may be more complex if there are multiple people on a home loan. Ideally, there will be an agreement in place determining how a person may get out of the shared housing arrangement if necessary. By understanding what happens when someone leaves the home, it may avoid straining relationships between friends or family members.
Prior to entering into real estate agreements, parties to such an arrangement may want to speak with an attorney. Doing so may make it easier to avoid an oversight that could lead to a legal challenge in the future. Having a real estate agreement reviewed by legal counsel may also help an individual feel more confident about signing it and living up to its terms.