Does shared ownership of real estate ever work?

Answer by  withluck (1745)

Shared ownership can work, but mostly does not go smoothly. The documents should include a clause for dissolving the partnership, so that the shares can be sold eventually.

Answer by  tamarawilhite (17883)

This is unwise. If you need your money back, all parties must agree to the sale of the shared real estate or you must go to court to force sale. If there is an accident on the property or unpaid taxes, you can be sued. If the other party divorces or is indebted, their share can have liens attached.

Answer by  patti (29325)

Whether you are purchasing residential real estate or an investment property, a comprehensive, written contract between the parties is what keeps things on an even keel.

Answer by  tamarawilhite (17883)

The problem with shared ownership is that if the other person divorces or is sued, the real estate can be liquidated (sold) to pay their debts.

Answer by  janedoe (701)

Yes, it can work, but only when the terms of the agreement are VERY clear, discussed thoroughly by everyone involved, and PUT IN WRITING. It be expensive, but you absolutely should go through a lawyer or at least (if it's real estate) an experienced real estate agent who can help you address common problems and get something in writing.

Answer by  tamarawilhite (17883)

Shared ownership poses very serious risks. If the other owner is sued for child support, divorce, or unpaid debts, that party gains partial say or ownership of your shared real estate. You cannot sell or mortgage the property without their say. If they die, their spouse or children now have a say in your real estate deal.

Answer by  HelpChat (494)

It can work, but you should have very clear agreements with your partners. You should have them written down and signed, even if you trust them. If something happens you'll have a record. Find out what you and your partners can contribute and put it on paper, including how to split if someone wants out.

Answer by  barkley (951)

Depending on the situation, and your relationship with the partner, shared ownership can work. Important to have a detailed agreement up front about who will do what and how taxes, maintenance, costs/profits will be handled. Must clarify all details now to the maximum extent in order to avoid issues later.