Co-Ownership of Vancouver Real Estate

26.06.2017

Buying a Home with your Friend

With the price of Vancouver Real Estate going up (and still) it’s becoming harder and harder to own a property yourself, especially without the help of a partner or family. I’ve had quite a few Buyers over the years ask about the possibility of buying a property with their friend. It’s definitely a possibility, but you have to know the risks involved, and you have to be prepared with a solid contract between you and your co-owners to cover all the details of the ownership agreement.

Though I’ve never had friends or clients pursue a co-ownership agreement, I have heard good stories of it working well for the Buyers, and I’ve heard horror stories of it ending with a ruined friendship and an expensive legal battle.

Prior to embarking on a search for a property with your friend, you need to sort out your finances and sort out the Co-Ownership agreement that will detail, in a written contract, everything regarding the ownership of the property.

Mortgage Approval for Co-Ownership

First, you need to sit down with a Mortgage Broker who can assist in approving both parties with their mortgage financing. I know Vancity had a good program with regards to Co-Ownership (they call it the Mixer Mortgage) but other financial institutions and lenders will have similar programs. A good mortgage broker will be able to sort out a solid mortgage with good terms, and can explain your options. Keep in mind that one persons bad credit or debts can affect mortgage approval for the other person.

Drafting an Agreement for Co-Ownership

Secondly, and most important, you need to sit down with a good Lawyer to iron out most of the details of the Co-Ownership agreement (some details would be property specific, and should be decided before or during your due diligence period of the house in question). Our Team often and highly recommends Bell Alliance for any of your legal services. They have outlined some of the details you need to decide prior to entering into a Co-Ownership agreement here: Bell Alliance – Co-Ownership Agreements. These include everything from who pays what bills, what happens if one party isn’t able to pay the mortgage, what happens if one party wants to sell, percentage of ownership and who handles the tenants (if any), along with much more.

Once these details are solidified, you can start looking for that home! Remember to keep a level head and a logical mindset when pursuing this option, and don’t shy away from having tough conversations with your friend about the pros and cons of each property, what you envision for the future, and what you need in order for this to work for you.

 

[x] close

Login for Full MLS Access

Name*:

Password*:

Email*:

Phone:

Budget: -

Square ft.: -

# of Bedrooms:

# of Bathrooms:

Area:

Key criteria:

Terms of Use

The term Virtual Office Website ("VOW") refers to a Participant's (REALTORS®) Internet website, or a feature of a Participant's Internet website, through which the Participant provides real estate brokerage services to Registrants (clients and prospects) with whom the Participant has first established a relationship where the Registrant has the opportunity to search for MLS® data, subject to the Participant's oversight, supervision and accountability. By agreeing to these "Terms of Use" you:

  1. acknowledge and understand that the Terms of Use do not create an agency relationship and do not impose a financial obligation on the Registrant or create any representation agreement between the Registrant and the Participant;
  2. understand that all data obtained from the VOW is intended only for your personal, non-commercial use;
  3. do have a bona fide interest in the purchase, sale, or lease of real estate of the type being offered through the VOW
  4. agree not to copy, redistribute or retransmit any of the data or information provided;
  5. acknowledge the Board/Association ownership of and the validity of the copyright in the MLS® database.
  6. agree that all information provided may be provided to the relevant Board and may be used to administer and operate the VOW and to investigate any breach of security of the data or the MLS® rules
  7. that a "mouse click" is sufficient acknowledgement and agreement to the terms
  8. must supply a user name and a password, the combination of which must be different from those of all other Registrants on the VOW, before being permitted to search and view information from the MLS® database via the VOW.
  9. must provide a valid email address. The Registrant may be permitted to access the VOW only after the Participant has verified that the email address provided is valid the Registrant's agreement to the VOW's Terms of Use is confirmed.
  10. understand the Participant must at all times maintain a record of the name, telephone number and email address supplied by the Registrant, and the username and current password of each Registrant, such records to be kept for not less than 180 days after the expiration of the validity of the Registrant's password. If the Board/Association has reason to believe that a Participant's VOW has caused or permitted a breach in the security of the data or a violation of MLS® rules related to use by one or more Registrants, the Participant shall, upon request, provide to the Board/Association a copy of the record of the name, email address, telephone number, username, current password, and audit trail, if required, of any Registrant identified by the Board/Association to be suspected of involvement in the violation.
  11. Understand that information on this site is deemed to be valid but is not guaranteed. It is the responsibility of the registrants to confirm all information on their own. Broker may not have reviewed or approved listing enhancements. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
  12. Understand any agreement entered into at any time between the Participant and Registrant imposing a financial obligation on the Registrant or creating agency representation of the Registrant by the Participant must be established separately from the Terms of Use, must be prominently labelled and may not be accepted solely by mouse click
  13. have received, read and understand the brochure published by the British Columbia Real Estate Association entitled Working With a REALTOR®

Having agreed to the terms and conditions of use, I would like to have access to this VOW information.

 Terms and Conditions I agree to the Terms and Conditions

[x] close

Login for VOW Access

Remember me

Don't have an account? Register now!