Unmarried Couples Purchasing Real Estate Together
ILLINOIS DOES NOT RECOGNIZE COMMON LAW MARRIAGE. Common law marriage is not recognized in the State of Illinois, therefore if you have been living together but are unmarried, you cannot apply for a mortgage as a married couple or take ownership of the property as a married couple.
WHOSE NAME WILL BE ON THE MORTGAGE? Will both your names be on the mortgage? If so, will you agree to joint and several liability, which would allow a lender to come after one or both of you for the entire mortgage amount in the event of a default? In the event of a break-up of your relationship, will you be responsible for the entire mortgage if your partners is estranged from you and backs out on the payments?
Who is providing the money for the down payment?
Will each of you pay equally toward the down payment?
WHO WILL BE THE LEGAL OWNERS OF THE PROPERTY? WILL YOU OWN EQUAL PERCENTAGES?
If only one of you is providing the down payment, or there will be unequal contributions by the two of you toward the down payment, then consider whether the one who gives the greater down payment will also be given a greater percentage of interest of ownership in the property;
Will the down payment be paid by one of your family members, such as parents of one or both of you? Will that down payment be a gift or a loan? Will the gift or a loan of the down payment be to only one or both of you? Will that family member request that you sign a Promissory Note to repay the loan and have a private mortgage recorded? Or will that famlily member request to have their name added as part owner to the property?
WHAT IF YOUR RELATIONSHIP BREAKS UP?
WHO WILL BE RESPONSIBLE TO MAKE THE PAYMENTS?
WHAT IF ONE OR BOTH OF YOU PASSES AWAY?
CONSIDER HAVING OUR OAK BROOK REAL ESTATE ATTORNEYS DRAFT A LEGAL AGREEMENT FOR YOU TO SPELL OUT THE TERMS OF YOUR REAL ESTATE PURCHASE AS AN UNMARRIED COUPLE. Contact us today.
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