Feb. 1, 2012
Dear George: My boyfriend and I plan to buy a home as co-owners. However, my credit rating is not as good as his. He thinks that he should buy the home alone and have me added to the deed later. What do you think?
Answer: It’s risky for you to purchase as an unmarried co-owner, and it’s difficult to get your name on the deed. You won’t have the protection afforded married co-owners by Texas community property laws. Buying a house is a business relationship. What happens if one of you gets mad, changes investment strategies, or starts dating someone else? If only he is on the deed, it will require expensive court proceedings to prove your ownership.
You have time to raise your credit score. Don’t jump into a real estate transaction without thinking of the exit strategy if things go wrong. If you ignore these warnings and follow your boyfriend’s suggestion, at least consult an attorney.
Dear George: My neighbor is letting go of his home and asked if I want to take over the payments on it. I’ve heard of “buying subject to.” Is this legal in Texas? How does it work?
Answer: Buying property “subject to” means “buying subject to an existing mortgage loan.” Unless you know what you’re doing, you can easily run afoul of the law when buying a residential property subject to existing financing; there are special disclosures and requirements. Don’t enter into such an agreement without talking to an attorney, preferably board-certified in residential real estate or commercial real estate law.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
