Can You Buy a House With Someone Without Being Married?

Unmarried individuals can purchase property together. While the process shares similarities with married couples buying a home, unique legal and financial considerations require careful planning and clear communication to protect all parties. Understanding these aspects from the outset establishes a solid foundation for co-ownership.

Legal Structures for Ownership

Unmarried individuals purchasing property must decide on the legal structure for holding the title. This dictates ownership rights, responsibilities, and what happens to the property in future scenarios. The two primary ways to hold title are Joint Tenancy with Right of Survivorship and Tenancy in Common. Each option carries distinct implications for ownership shares and inheritance.

Joint Tenancy with Right of Survivorship (JTWROS) means all co-owners have an equal, undivided interest in the property. This structure presumes a 50/50 ownership share, regardless of individual financial contributions. A defining characteristic is the “right of survivorship,” meaning if one owner passes away, their share automatically transfers to the surviving co-owner(s) without probate. This transfer supersedes any will or estate plan the deceased owner may have had.

JTWROS simplifies property transfer upon death by avoiding probate, but an owner cannot will their share to other heirs. This structure requires all owners to have equal rights and interests; they cannot sell or transfer their share without affecting the joint tenancy. If a joint tenant sells their interest, the joint tenancy breaks and converts to a tenancy in common for the remaining owners and the new owner.

Tenancy in Common (TIC) offers more flexibility than JTWROS regarding ownership shares and inheritance. Under TIC, co-owners can hold unequal ownership percentages, reflecting different contributions to the property’s purchase or ongoing expenses. One co-owner might own 75% while another owns 25%. Unless otherwise specified, the law presumes a 50/50 ownership split in a TIC arrangement, so clearly document unequal shares.

Unlike JTWROS, TIC has no right of survivorship. If one tenant in common dies, their share does not automatically transfer to the surviving co-owner(s). Instead, the deceased owner’s share passes to their designated heirs through their will or, if no will exists, according to state intestacy laws. This structure allows each owner to independently mortgage, sell, lease, or bequeath their share without the consent of other co-tenants.

Financial Arrangements for Unmarried Buyers

Co-ownership requires a clear understanding of mortgage applications, initial contributions, and ongoing expenses. Unmarried couples can apply for a mortgage together, allowing lenders to consider both incomes and credit histories. This can lead to qualification for a larger loan or more favorable interest rates. If one partner has a significantly lower credit score, the lender may base their decision on the weaker score, or the partner with the stronger financial profile might apply alone. Both individuals on the mortgage are equally responsible for repayment, even if they agree to split payments differently.

Managing the down payment is a financial consideration. Unequal contributions can be addressed through a co-ownership agreement or by reflecting differing contributions in ownership percentages, particularly if choosing Tenancy in Common. If one partner contributes a larger down payment, their ownership share under a Tenancy in Common arrangement could be proportionally higher. Maintaining clear financial records of all contributions is important for transparency and future reference.

Ongoing financial responsibilities include mortgage payments, property taxes, homeowner’s insurance, utilities, and maintenance costs. Expenses can be split 50/50, proportional to income, or proportional to ownership share. For instance, if one partner earns 60% of the combined income, they might contribute 60% of shared expenses. Opening a joint bank account for household expenses simplifies bill payment and provides a clear record of shared contributions.

Co-ownership has tax implications. Unmarried couples file separate tax returns and cannot file jointly. Each co-owner can claim their share of eligible tax deductions, such as mortgage interest and property taxes, on their individual tax returns. The deduction for state and local taxes (SALT) is capped at $10,000 per taxpayer. For mortgage interest, the deduction applies to interest on up to $750,000 of mortgage debt per taxpayer. If only one person is on the mortgage, only that individual can claim the mortgage interest deduction, even if the other partner contributes to payments.

Creating a Co-Ownership Agreement

A co-ownership agreement, sometimes called a living together or cohabitation agreement, is a legal document for unmarried partners purchasing property. This written contract clarifies expectations, defines responsibilities, and provides a framework for scenarios that may arise during co-ownership. It offers protection similar to a prenuptial agreement for married couples. Its purpose is to prevent misunderstandings and provide a clear roadmap for handling finances, decision-making, and potential relationship changes.

The agreement should detail initial financial contributions, including down payment and closing costs. It should also outline how ongoing expenses, such as mortgage payments, property taxes, insurance, utilities, and maintenance, will be divided. This can include specific percentages or a formula based on income or ownership share. Stipulations for who pays for repairs and improvements, especially major ones, are important to avoid future disputes.

Provisions for future events are an important component of the agreement. This includes defining the decision-making process for significant property matters, such as major renovations or selling the home. The agreement should also establish procedures for one party buying out the other’s share, including methods for property valuation, such as an appraisal. Addressing what happens if one party wants to sell and the other does not, or if the relationship dissolves, provides a course of action.

The agreement should consider the implications of one co-owner’s death, referencing how it interacts with the chosen legal ownership structure (Joint Tenancy or Tenancy in Common). While JTWROS automatically handles survivorship, a TIC arrangement requires the agreement to specify what happens to the deceased’s share. Dispute resolution mechanisms, such as mediation or arbitration, can be included to resolve disagreements outside of court. Consulting with legal counsel to draft this agreement is recommended to ensure it is legally sound and protects both parties’ interests.

The Home Buying Process for Unmarried Couples

The procedural steps for unmarried couples buying a home largely mirror those for married couples, but with added communication and planning specific to their co-ownership arrangement. A first step involves getting pre-approved for a mortgage, ideally as co-borrowers. Lenders assess the financial qualifications of both individuals, including credit scores, income, and debt-to-income ratios, to determine the loan amount and terms. Discuss individual financial standings transparently before this stage.

Working with a real estate agent who understands unmarried co-buyers can streamline the search process. The agent helps identify properties that fit shared preferences and budget, and guides the couple through making a competitive offer. Once an offer is accepted, the process moves to inspections and appraisals. A home inspection assesses the property’s condition, while an appraisal determines its market value for the lender.

The closing process is the final stage where ownership transfers. Both individuals, as co-borrowers and co-owners, sign various legal documents, including the deed, which transfers property ownership, and the mortgage note, which outlines the loan terms. This signing ensures both parties are legally bound to the property and the loan. Clear communication and a shared understanding of each step are important throughout this process, from initial property search to final signing at closing.