Relationship Breakdowns
As hard as it is, you should plan for the worst and hope for the best.
Relationship breakdowns happen all too frequently, so it’s important to make sure you have the right agreements in place to cover all these eventualities.
Whether a relationship breaks down or there's confusion about a term in the loan, it's useful to note every agreement down and have it signed by each party.
Make sure everyone understands the implications; especially of a gift versus a loan.
It’s wonderful when both sets of parents want to help the couple with their deposit but it could get complicated if the relationship breaks up.
Document the help that has been given by all parties and agree how this translates into ownership of the home. This can be in absolute dollars (e.g. $100,000) or proportion (e.g. 20%).
Consider what happens to the agreement if one of the parties opts out or they run into problems and need the money earlier than expected.
These can be difficult discussions, but it is always best to have them now, as they get far more tricky down the track.
And you should always seek advice from a trusted source before committing to a decision.
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