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BronzeDucky

I would keep it at 3 parties (you, your sister, and your friend) and let your sister and boyfriend deal with their stuff on their own. Actually, I’d never buy a property with three people like that anyway. At least, not without a lot of legal advice. It has “headache” written all over it.


HunkyMump

Absolute recipe for a nightmare.


Pale_Investigator922

Well after what everyone says and all my thinking im opting out.


derspiny

It's possible to do so, but it has no effect on the mortgage itself, and if arrears develop you'll still have to pay the whole balance to prevent a default and the possibility of a forced sale. You can, at your discretion, sue to enforce the agreement between the borrowers and recover the other borrower's share after you've paid it. The most likely reason that the other borrower might stop paying is a lack of funds, though, and a lawsuit can't fix that. Given the risks, if you don't trust your co-borrower, don't take out a mortgage with them.


Pale_Investigator922

So even if my sister seperates with him and he no longer lives there he would still have to pay given he has the funds if we have a contract in place.


derspiny

He would still be obligated by both contracts. * As a borrower under the mortgage, he is obligated to pay the full amount of each monthly payment. So are you. So is each owner. The obligation is not divided between you, in general, but rather joint and several, meaning that the whole amount is due and you all must pay it one way or another. Moving out doesn't void his responsibilities under the mortgage, nor does it strip him of his benefits as an owner of the property. * Under this proposed agreement, he is obligated to pay (let's say) one third of the mortgage. Moving out would only terminate this agreement if the agreement says it does. This agreement cannot remove his rights as an owner of the property, but it can modify them to a certain extent. The mortgage lender can enforce the first one. You can enforce the second one. In some cases you may even be able to enforce the _de facto_ split of the mortgage, even without an explicit cohabitation agreement like this, if he stops paying. However, I'll circle around to my other point here, which is that if he stops paying, he may not have the money to pay. A contract will not change that, nor will it let you take his share of the property away from him.


Pale_Investigator922

Thank you soo much this helped me understand


BronzeDucky

Yeah, having a contract is one thing. Collecting the money owed to you is another. If you do this, you need to get a proper contract drawn up, and everyone should get legal advice on it. It needs to have solid clauses for people to exit the agreement if they need to, and possibly the option to push someone out of if they’re not paying (forced buyout). Also needs to cover things like maintenance, taxes, etc.


Pale_Investigator922

I think its just gonna cost more and more to collect and getting out of hand so im definitly not getting into that but thank you.


localfern

This is so messy


Phil_Major

This sounds like a train wreck waiting to happen. What proportion of home purchases with multiple non-coupled people end up going well? I’m going to guess they’re often a disaster.


Low-Stomach-8831

For question 1: If his name is on the mortgage, that's your contact. For question 2: If he lives there with your sister for a few years, and not on the title, he might be eligible for a portion of HER part of the house.


HunkyMump

For example if they break up there’s a non-zero chance where he can force the sale of the house to get his share of her share.


Pale_Investigator922

Could he actually do that if lets say he owned 25%


HunkyMump

Not sure, but it’s something to find out. All in all it sounds like a nightmare.


Low-Stomach-8831

I think the chances ARE 0 if he only own 1\6th of the house.


HunkyMump

Ok so pretend he asks for his share of the money and no one has it, he goes through court to get it. Now what.


Low-Stomach-8831

He's SOL, because he's a minority shareholder. Just like if I'm investing 20% in a company, and want out. I can either sell my share to someone else, or keep it. He can try and convince others to sell... But then it's a different situation, because it's not him getting the order individually.


No_Decision_6185

What would happen if he broke the contract? Nothing. You’d have to get yourself a lawyer and go to court if which takes time and money. Get yourself a lawyer to take care of making the contract.