Non-Traditional Households Make Real Estate Transactions Murky
Traditional husband and wife household is no longer the norm. There are probably more nontraditional households out there in America today then our so-called traditional. Same-sex couples, friends, siblings, parents or grandparents, fill in the blank, all add to the nontraditional/traditional type of household. This can get a little murky when it comes to the real estate transaction, home loans and title. While anyone can purchase a house regardless of their race, religion, family or sexual status, what happens when the deal falls through, real estate transactions terminate, or one person simply gets mad and leaves?
VA home loans require couples to be married in order to be approved for a home loan. This certainly takes this type of loans off the menu when discussing nontraditional type of ownership. The conventional, FHA, and USDA loans as well as cash buyers, all fall into the category for just about anyone that wants to buy a home so long as the finances support the request.
One of the biggest key elements to this type of a real estate transaction is to get everything in writing. People always think they’re the exception and disillusionment will never happen to them. But no one is certain of the future and even those that feel they could get married shortly or will always be together regardless, can find a time where love no longer is the tie that binds. Having everything in writing as to what could happen is the safety net that nontraditional home buyers need to facilitate.
If one party defaults during the real estate purchase, lawyers may decide that default and could cost them more than simply going through with the transaction and selling later. What happens if an unmarried couple decides to purchase a home and before that home closes when party cheats and the relationship is dissolved? (All legal advice should be garnered from a professional attorney and not your real estate agent)
Things to consider in writing when determining who gets what is who will be the beneficiary should one party default or die during the transaction and once ownership is established. How will the real estate be distributed should the party no longer maintain a relationship?
For true precautions, all of these details should be written up with a lawyer offering advice and information. Sometimes simply talking about the situation will bring light to the table and help everyone be on the same page.
Who knows, maybe you will be the exception, but just in case, as romantic as it may sound, keeping all of your ducks in a row and protecting yourself both now and in the future just makes smart financial sense.