Home News I put $200,00 towards a down payment for a condo with my boyfriend. He is on the title, but not on the mortgage. How do I protect my equity investment now?

I put $200,00 towards a down payment for a condo with my boyfriend. He is on the title, but not on the mortgage. How do I protect my equity investment now?

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Dear Quentin,

I recently sold a condo and turned the equity (over $ 200,000) I earned into a new condo that I own with my partner. My partner — we are not married — is in the title, but not in the mortgage. He definitely pays half of all the costs every month. What is the best way to document and protect my shares in the event of a split?

From the bottom of my heart


Dear complex,

Submit this under “R” for “real estate” and under “R” for “rulow”.

If he is in the title, he should be in the mortgage. It creates an imbalance of power within the property ownership contract. Not only have you invested $ 200,000, you are taking all the risks. If your relationship with this guy gets worse and he leaves, you will be forced to pay to avoid losing your home and damaging your credit rating, not him.

In addition, if you repay your mortgage, but you sell it, he is entitled to a 50% share of that asset. It’s Winwin for him. He also received $ 200,000 in his money and mixed it into his shared assets. This is an example of notes and textbooks to avoid when buying real estate with a partner, especially a partner you are not married to.

I think your partner had a lower salary and / or credit rating, and for that reason you decided to put your own name on the mortgage. This is a rare arrangement, but it should be dealt with while your relationship is healthy and strong. If you put him in a mortgage, you’ll need to refinance and interest rates may have risen since you bought it.

A Cohabitation agreement This is a wise move for unmarried couples, especially those who own a home. It’s a contract, a de facto prenuptial agreement. You both agree to the terms of use: what happens to your home if you break up or one of you loses the other? Do you sell real estate and split your earnings into 50/50? For example, who is your medical agent?

If your boyfriend does not contribute to the down payment, you should specify in the agreement that you will get back both of what you have invested in your home. You can formulate a conversation about a cohabitation agreement regarding your living conditions and include your position on the property you jointly own. As always, have a lawyer review something before you sign.

I wish you many happy years in your new home-together.

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