Formalize Your Structure
After you decide on how to hold Title and the division of ownership, it's time to make it official.
Your determinations on how to structure your co-ownership will be documented in multiple places, including:
- Purchase and Sale Agreement
- Deed
- Public Records
Notify the professionals on your deal team, starting with your agent and Loan Officer, so they can complete your purchase documentation accurately and notify Title and Escrow. If you have questions, consult your deal time. Remember that neither your agent nor loan officer should advise you on structuring co-ownership, but they can answer procedural questions and direct you to external assistance if appropriate.
✔️ Action Item
You should create a Co-ownership Agreement and specify the details of your co-ownership structure within that document. Know that the form of Title you select determines which type of Co-ownership Agreement is appropriate.
You don't need to submit a Co-ownership Agreement to your deal team. It's beyond the scope of their involvement.
Recommended Reading
CoBuy Blog: Co-ownership Agreements
Matt Holmes (LinkedIn) is co-founder and CEO of CoBuy, formed in 2016 to unlock homeownership for everyone. Before hopping a flight to Seattle to start CoBuy with his mother, Matt worked in investment banking and financial markets in London for a decade. He holds degrees from University College London (BSc Economics) and ESCP Business School (Masters, London & Turin).
Pam Hughes (LinkedIn) is Co-founder and COO at CoBuy. She has over 40 years of experience across finance, real estate, insurance, and construction. Pam has committed to personal empowerment through financial education for decades, which inspired her to start CoBuy with her son in 2016. She's best friends with a small dog known as Francis.