When do the “what-ifs” multiply exponentially?

The number one mistake made when negotiating a residential real estate
transaction is when participants lack understanding of the responsibilities
of all of the players. This is even more true when non-married, co-buyers
are purchasing a property. That’s when “what-ifs” just multiply exponentially.

Proper Planning Prevents Perplexing Problems

Real estate attorney Nancy Chillag is an expert on agreements between co-buyers.
“Unfortunately,” she observed, “I see them when they (joint-ownerships), go bad,
more than I see them upfront.”

The Cart In Front of the Horse

She gave the common example, “A lot of times people will decide,…let’s go buy
a rental property. They purchase it, and, something goes wrong several years down
the road. And then they contact an attorney.”

Don’t Try This a Home

Only real estate attorneys experienced with agreements between co-buyers
should be consulted. Many times one party will initiate the agreement while
the others will have another real estate attorney for review and discussion.
Chillag advises, “When you decide to buy, see an attorney at that time,
understand what the risks are, and then move forward.”

Penny Wise and Pound Foolish

Whether co-buyers are friends, family or colleagues, an agreement is absolutely
essential. The attorneys fees paid up-front creating an agreement, are a fraction
of the legal fees each litigating co-buyer will pay when an agreement is absent
and the partnership goes sour.

Nancy Chillag

650.321.6796

Post content excerpted from Kapowich on Real Estate ~ Program # 111

Pat Kapowich,
“Negotiating Smooth Transactions Throughout The South Bay”
SiliconValleyBroker.com