Purchasing a home is a significant milestone for any couple, and for unmarried same-sex partners, it may come with unique challenges and considerations. From understanding legal protections to setting up joint ownership, it’s essential to be well-informed before embarking on this exciting journey.
At GayRealEstate.com our 3500+ LGBTQ+ Realtors have been representing the best interests of LGBTQ+ folks for over 25 years, offering Free home buyers representation in every city coast-to-coast.
In this blog post, we’ll provide essential insights and tips for unmarried same-sex couples looking to buy a home together.
- Understanding Legal Protections:
While marriage equality is now the law of the land in the United States, unmarried couples may not have the same legal protections as married couples. This is particularly important when it comes to property ownership. Before you begin the home buying process, research your state’s laws regarding domestic partnerships and property rights, and consider consulting a legal professional for guidance.
- Establishing Joint Ownership:
There are two primary ways to establish joint ownership of a property: joint tenancy with rights of survivorship and tenants in common. Joint tenancy means that both partners own the property equally, and if one partner passes away, their share automatically transfers to the surviving partner. Tenants in common allow each partner to own a percentage of the property, which can be passed on to a designated beneficiary in case of death. Discuss your preferences and goals with your partner and consult a legal professional to determine the best option for your situation.
- Financial Preparedness:
Before purchasing a home, it’s essential to evaluate your financial readiness. Consider your combined income, credit scores, and debt-to-income ratio, as these factors will impact your ability to secure a mortgage. It’s also important to set a budget for your home purchase and determine how much each partner will contribute to the down payment, closing costs, and ongoing expenses like mortgage payments, property taxes, and maintenance. Lastly there are other expense factors to consider such as repairs and upgrades, as well as basic services like power or internet. For example, one would have to contact an internet provider in order to establish a working internet service under your name within the property. There may also be a few minor fixes like shower door repair that could be done promptly or as part of a bathroom renovation project, and that would make living in the property a bit more comfortable, and as such should be high on the list to get them out of the way. Call Rosen Contracting for home improvement Roanoke. Seek professional shower repair services if your shower needs to be repaired to replaced.
- Securing a Mortgage:
When applying for a mortgage, unmarried couples will need to decide whether to apply jointly or individually. Jointly applying for a mortgage may result in a higher combined income and potentially better loan terms, but it also means that both partners’ credit scores will be considered. If one partner has a significantly lower credit score, it may be beneficial to apply individually. Consult with your GayRealEstate.com realtor for a referral to a gay/gay friendly mortgage professional to determine the best approach for your specific situation.
- Protecting Your Investment:
It’s crucial to protect your investment by having the appropriate insurance coverage in place. Homeowners insurance and a home inventory form are must-haves, but you may also want to consider additional policies, such as title insurance, to guard against potential legal claims on the property. Additionally, since unmarried partners don’t automatically inherit each other’s assets, it’s essential to have a legally binding will or estate plan in place to ensure your wishes are carried out in the event of one partner’s death. Again, your GayRealEstate.com Realtor can provide an insurance agent referral or use a service like GaySurance.com.
- Drafting a Co-Ownership Agreement:
A co-ownership agreement can provide added legal protection and help avoid potential disputes down the line. This document should outline each partner’s financial responsibilities, including mortgage payments, property taxes, and maintenance costs, as well as what happens if one partner wants to sell their share of the property or if the relationship ends. Consult with a legal professional to draft a comprehensive co-ownership agreement that meets your specific needs.
Buying a home together is an exciting step for any couple, but for unmarried same-sex partners, it’s crucial to be well-informed about the unique challenges and considerations involved. Click here for more information about the first time home buyers incentive in Canada.
By understanding legal protections, establishing joint ownership, preparing financially, securing a mortgage, protecting your investment, and drafting a co-ownership agreement, you’ll be well on your way to making your dream of homeownership a reality.
Jeff Hammerberg is a distinguished entrepreneur and broker, and the visionary founder of GayRealEstate.com. For over 25 years, he has been a prolific writer, coach, and author who has been instrumental in advancing the cause of fair, honest, and equitable representation for all members of the LGBTQ+ community in real estate matters. GayRealEstate.com, which he established, is the largest and longest-running gay real estate agent referral service in the nation, boasting over 3500 LGBTQ+ realtors who operate in cities across the United States, Canada and Mexico. His commitment to promoting inclusivity and accessibility in real estate has earned him a reputation as a passionate advocate for the LGBTQ+ community.
