Not ready to marry, yet interested in purchasing a condo? While purchasing a condo with your significant other may seem like an exciting next step, it’s critical to understand the regulations in your province that govern how the property is handled in the event of separation or death. To avoid surprises when applying for a mortgage, the first step is to exchange personal finance information, such as wages, debt, and credit ratings.
You’ll need to decide how you want the title to be held once you’ve developed a budget and decided how to split the costs of buying and maintaining the condominium.
Both parties can have the title “JOINT TENANTS.”
When you both own equal portions of the apartment, this arrangement is appropriate. The most significant advantage of shared tenancy is that neither party can sell the condo without the permission of the other.
Both of you can be referred to as “TENANTS IN COMMON”
Unmarried couples typically acquire title in this manner. This is due to the fact that this arrangement allows you both to own an unequal share of the home, and if one partner dies, the partner’s share can be bequeathed to whomever the person desires.
Furthermore, if you or your partner have bad credit, your lender may advise you to only put one of you on the loan. It’s crucial to remember that if you decide to remove one person from the mortgage but both parties are on the deed, the person on the mortgage is legally responsible for repaying the loan.
Unmarried couples purchasing a condo intend to stay together, but plans frequently change. You may make an already terrible circumstance a little easier to bear by planning ahead of time.
