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Co-ownership agreement for unmarried partners purchasing property

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  • 06-03-2018 11:31am
    #1
    Bob24
    Registered Users Posts: 10,905 ✭✭✭✭


    Would people usually sign one?

    And what would most people decide to do in case of death of one of the partners? Give the whole property to the surviving partner or give half to be representative of the deceased with an option for the surviving partner to purchase it at market price?


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    #2
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    If the house is going to be lived in by both of you and neither of you have children then I think the only fair thing to do is leave the house to the survivor.


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    #3
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    They may not have legal effect, you'd need to look into that. Death could be left to the wills of the respective partners.


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    #4
    Bob24
    Registered Users Posts: 10,905 ✭✭✭✭Bob24


    GingerLily wrote: »
    If the house is going to be lived in by both of you and neither of you have children then I think the only fair thing to do is leave the house to the survivor.

    Thanks.

    I’m leaning towards this, but I think either option is fair as long as both people agree and it probably depends on circonstances. For exemple if each partner has spent most of their savings to pay for half of the house and one of them has parents or siblings who might need financial support, it could be considered more fair to give their share to those family members rather than their partner in case of death.

    So I guess what I’m wondering is what option is better suited for which situation.


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    #5
    pxdf9i5cmoavkz
    Closed Accounts Posts: 827 ✭✭✭pxdf9i5cmoavkz


    Bob24 wrote: »
    And what would most people decide to do in case of death of one of the partners? Give the whole property to the surviving partner or give half to be representative of the deceased with an option for the surviving partner to purchase it at market price?

    Your will can dictate virtually any condition (within reason)

    • You can give the entire asset over to the surviving partner at no cost.
    • Have the surviving partner purchase the half IF the deceased partner has children and the funds donated to the children.
    • Have the surviving partner dress in a pink ballerina outfit upon which they receive the half at no cost.


    These are just examples that I pulled out of thin air. All of them are valid in your Last Will and Testament and of course, keep in mind that the bank will want their dues if any debt is owed on the property.



    You will also need to consider what happens if you split (amicably or not).


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    #6
    TheBoyConor
    Closed Accounts Posts: 3,292 ✭✭✭TheBoyConor


    These agreements are all well and good but they have no solid legal standing and are only of any use if all parties continue to honour the agreement.
    If for example the family of the deceased were to challenge the will/agreement there is a very strong likleyhood that they could argue that the partnership was subject to the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 and therefore the estate ought to be distrubuted in accordingly as if the couple were in a de-facto marriage.

    If you co-purchase a property and live in it with a partner for 5 years (2 years if children happen) then you might as well be married as far as inheritance goes. You can't disinherit a partner from what they would be legally entitled to.

    Basically, my point is that you can't circumvent or cheat the inheritance laws associated with marriage by means of mutual agreements. The law will always trump any contract if there is a conflict or inconsistency.


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    #7
    C3PO
    Registered Users Posts: 3,760 ✭✭✭C3PO


    There is a lot of incorrect legal advice being handed out in this thread .... and I'm speaking from personal experience! You need to get a solicitor to explain the difference between owning a property as Tenants in Common and Joint Tenants! The advice above is just plain wrong! Go and talk to a solicitor!


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    #8
    witchgirl26
    Registered Users Posts: 2,141 ✭✭✭witchgirl26


    I know from experience with my solicitor that he recommends having an agreement in place which lays out who put in what etc for the purchase of the house and what should happen in the event of the breakup of the relationship more so than the death of a partner. He recommended a will being drawn up for the event of a death which would indicate what was to happen to each persons possessions and estate.


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    #9
    banie01
    Registered Users Posts: 16,751 ✭✭✭✭banie01


    A solicitor will advise on Tenancy in Common versus Joint Tenancy which will address the OPs question.

    Of more pressing concern should be the Tax situation should one co-owner pass away as the CAT allowance for strangers in law can leave quite a tax bill outstanding if appropriate arramgements are not in place.


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    #10
    Bob24
    Registered Users Posts: 10,905 ✭✭✭✭Bob24


    C3PO wrote: »
    There is a lot of incorrect legal advice being handed out in this thread .... and I'm speaking from personal experience! You need to get a solicitor to explain the difference between owning a property as Tenants in Common and Joint Tenants! The advice above is just plain wrong! Go and talk to a solicitor!

    Thanks. Yes I already have a template agreement from my solicitor. Just wondering if most people do it and what options they go for. Basically the solicitor said it’s a personal choice and didn’t recommand either way.


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    #11
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    TheBoyConor wrote: »
    These agreements are all well and good but they have no solid legal standing and are only of any use if all parties continue to honour the agreement.
    If for example the family of the deceased were to challenge the will/agreement there is a very strong likleyhood that they could argue that the partnership was subject to the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 and therefore the estate ought to be distrubuted in accordingly as if the couple were in a de-facto marriage.

    If you co-purchase a property and live in it with a partner for 5 years (2 years if children happen) then you might as well be married as far as inheritance goes. You can't disinherit a partner from what they would be legally entitled to.

    Basically, my point is that you can't circumvent or cheat the inheritance laws associated with marriage by means of mutual agreements. The law will always trump any contract if there is a conflict or inconsistency.

    A family can only challenge a will if they are children of the deceased or they claim a lack of capacity. For co-habitation there has to be a relationship of dependance. Usually people take out life policies so that the CAT will be paid for the survivor on the death of the first one.


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