Co-buyer

What It Means

A co-buyer is an individual participating in the purchase of a residential property with one or more other parties, where at least two parties are not married to each other. The term applies specifically to the pre-closing phase of the Co-ownership Lifecycle — once the transaction closes, co-buyers become Co-owners.

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A person is considered a co-buyer regardless of whether they will be on the mortgage, on Title, or both. The term describes their role in the purchase process, not their financing position. A co-buyer who is also on the loan is a Co-borrower. A co-buyer who guarantees the loan without being on title is a Co-signer. These are distinct roles that carry different legal and financial implications.

Why the Distinction Matters

The term co-buyer is often used interchangeably with co-borrower or co-owner in casual conversation, but these are functionally different roles. A co-borrower shares mortgage liability. A co-owner holds title. A co-buyer may or may not do either — the term refers specifically to someone who is part of the purchasing group before closing.

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This distinction is important because decisions made during the Co-buy phase — about Participation, Capital Contributions, Ownership Shares, and Governance — carry through the full lifecycle. Clarity about who is a co-buyer, what role each person plays, and how those roles translate into ownership and liability after closing is foundational to a well-structured arrangement.

How Co-buyers Map to Participation

Each co-buyer’s role in the arrangement should be defined through Participation mapping, which distinguishes between asset-side roles (who holds title) and liability-side roles (who is on the mortgage). A co-buyer may be an occupant or non-occupant, a co-borrower or a co-signer, a contributor of capital without being on either title or the loan, or some combination of these. Defining these roles before closing prevents misalignment between financial exposure and legal rights.

Key Points

• An individual participating in a residential property purchase with one or more other non-married parties
• Applies specifically to the pre-closing phase of the Co-ownership Lifecycle
• Distinct from co-borrower, co-signer, and co-owner — each carries different legal and financial implications
• Co-buyer status is independent of loan or title position
• Each co-buyer’s role should be defined through Participation mapping before closing
• Decisions made during the co-buying phase carry through the full Co-ownership Lifecycle