Exit Strategy FAQs

When do we create an exit strategy?

As early as possible, ideally during the initial planning stages for co-buying. This allows you to identify any differences of opinions and work them out, or not.

Can we modify the exit strategy later?

Absolutely, but any changes should be agreed upon by all co-owners and reflected in an updated Co-ownership Agreement.

Why do we need to put an exit strategy in writing?

Verbal agreements are a shaky foundation for multi-party asset management. Memories fade, and details are difficult to prove. Even when co-ownership unwinds amicably, external parties frequently become involved in the sale or transfer of homeownership: courts, the IRS, creditors, and insurance companies. These external parties won’t have access to the details of a verbal agreement and do not have an incentive to simply “take your word for it.”

Including your exit strategy in a written agreement provides clarity, minimizes doubt, and establishes a record of your decisions.

In short, writing things down protects your interests as co-buyers and will give you peace of mind.