I put $200,000 toward a down payment for a condo unit with my boyfriend. He is on the title, but not on the mortgage. How do I protect my equity investment now?

Dear Complex,

File this less than “R” for “real estate” or “R” for “ruh-roh.”

If he is on the title, he need to be on the property finance loan. It generates an imbalance of ability within the home ownership settlement. Not only have you invested $200,000, but you are shouldering all of the threat. If your romantic relationship with this gentleman sours, and he walks away, you will be remaining to make the payments to stay clear of losing your residence and damaging your credit score score, not him. 

What’s much more, if you pay the mortgage loan off, he will even now be entitled to his 50% share of the residence must you offer it. It is a win-win for him. You also took $200,000 of your own money and commingled it in a shared asset. It is a cautionary tale and a textbook illustration of what to stay clear of when shopping for a house with a partner, specially 1 to whom you are not married.

I’m assuming your partner experienced a decrease income and/or credit rating rating and, for that purpose, you made the decision to set your own identify on the mortgage. It’s an strange arrangement, but just one that really should — although your connection is healthy and strong — be resolved. If you place him on the mortgage loan, you would have to refinance, and premiums have most likely risen considering that your obtain.

A cohabitation arrangement is a smart move for unmarried couples, especially those people who have a dwelling. It is a deal — a de facto prenuptial arrangement. You both agree to the conditions and disorders: What transpires to the residence if you split up or 1 of you predeceases the other? Do you sell the house and split the proceeds 50/50?  Who, for instance, is your healthcare proxy?

You should specify in that settlement that you equally get again what you invested in the property, if your boyfriend has not contributed to the down payment. You can body the conversation about the cohabitation agreement all over your residing scenario, and consist of your position on the assets you jointly have. As constantly, have an attorney evaluation something prior to you indicator.

I wish you several delighted several years — jointly — in your new household.

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