Purchasing Property with a Partner? Check this out.

Q. I would like to purchase a piece of real estate with my business partner.  How should we address the issue of what happens with the real estate upon the death of one of us?

A. You could take title as “tenants in common”, rather than “joint tenants with rights of survivorship”.  This would ensure that your share of the property would pass to your heirs, as outlined in your will, instead of transferring to your partner automatically.  I would recommend that you each update your wills to be sure you address this important issue.

Another option would be to for a Limited Liability Company or Corporation.  Both of these will allow you to structure the formation documents in a manner that protects each partners interest and you and also incorporate a Buy/Sell Agreement.  Make sure to speak to your financial lender in advance as many lenders do not allow you to purchase or refinance certain types of property while owned by a LLC or Corp.

Your real estate is generally one of the most valuable assets you may own, make sure to take the proper precautions to protect your interest and those of your heirs.

As with any legal issue, the advice of a trained professional is always beneficial.  Our firm is a full service law firm covering such legal matters as personal injury and estate planning.  If we can assist you, please call or visit our website.

Published in: on March 8, 2010 at 10:59 am  Leave a Comment  

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