If you are talking about moving in and buying a house together as an unmarried couple, there are issues you need to take into consideration and plan for. Before signing up to buy property, you need to have an honest and open conversation about your individual financial position. This should include how much each of you earns, your monthly expenses as well as your credit and credit history.
While you hope for the best outcomes for your relationship, there will be financial implications in an event where the relationship comes to an end. It is therefore important that you individually protect your financial interests. To do so, it is best to appoint a lawyer to help you draft an agreement upfront. It is advisable that you treat this transaction as you would a business one so that you are both covered for the worst-case scenario and even death.
Since a house is probably going to be the one valuable asset you co-own, a binding agreement will protect each of you in case something goes wrong. A co-ownership agreement should detail critical information like who pays what and when as well as how the payments will be made should the relationship end. This will ensure that should there be disputes at the end of the relationship, they will be settled without litigation. Your agreement should also explain what will happen if one partner is unable to meet their financial obligations towards the payment of the house.
Registration
Throughout your co-ownership agreement process, you also need to think of how you will register the property. For unmarried couples, the three general registrations include sole ownership, joint tenant ownership, or tenants in common ownership. Should you register the property as joint tenants, it means that you and your partner will own the property equally, and each of you can use the property equally. In a case one of you is deceased, the other will automatically become the owner of the deceased owner’s share. If you decide to own the property as tenants in common, you and your partner will have to ascertain what percentage of the property each of you holds.
If you are first home buyer home buyers, also read this helpful article: https://www.beinformed.co.za/2021/10/27/home-buying-tips-for-first-time-buyers/
You could also qualify for the government’s first time home buyers subsidy, check if you qualify on this article: https://www.beinformed.co.za/2021/10/28/how-to-apply-for-flisp-housing-subsidy-for-first-time-home-buyers/
You should also read this article: https://www.beinformed.co.za/2021/11/03/financial-conversations-you-should-have-before-getting-married/
