One of the things that have changed since we entered the real estate field is the number of single people buying homes, alone or together.  I am thinking of people who are not a “married couple”.  Sometimes, it is a same sex couple, two or more friends, mother and daughter, brother and sister, or boyfriend and girlfriend … young and old, just not covered by the legal protection of a marriage contract.

Everything seems to go great when you are making plans and the home is still a fresh dream.  You never expect to have a problem that cannot be talked over and handled together.

As realtors, we have some concerns.  We have seen where things got very messy and people special to us get hurt. That is why we “nag” about having a legal contract spelling everything out at the very beginning. Who pays for what and how do you divide the upkeep?  It is important to know what would happen if you decide to separate. 

How do you sell and divide the profit or loss?

We are including some of the areas to work out from an attorney’s viewpoint.  Use these as a starting point to discuss and decide before you sign the contract for the new home.

There are four important financial steps that unmarried couples need to take

and they need to take them sooner rather than later.

1.  Prepare and sign a Will.  Without a will your “next of kin” will inherit everything

    and your domestic partner will get nothing. 

2.  Title your house as “Joint Tenants”.  A joint tenancy creates a right of survivorship

     in the remaining partner.  This means that even without a Will the house will

     go to the surviving partner.

3.  Have a Domestic Partnership Agreement.  Such an agreement should deal with how

     assets will be purchased, owned, maintained and disposed of.  Agree now while everyone

     is agreeable!

4.  Be prepared for sickness.  Have a Healthcare Declaration and Power of Attorney giving 

     your partner the authority and power to make healthcare decisions.  Without it, we are  

     back to your “next of kin” making the decisions and possibly excluding your partner from

     even seeing you while you are sick.

For more information and assistance with domestic partnership issues please feel free to contact:

Jim Reichert

James A. Reichert, LLC

612-677-8332

jim@jareichertlaw.com

Here is another great article on this topic from The New York Times: 

Come Buy With Me and Be My Love

Many years ago, I wrote a children’s coloring book. The moral of my story was that your house, like your clothes, must fit you personally. When you’re 6, your Dad’s ski pants and snow boots are not such a great fit. Likewise, a house boat in Minnesota, where we get snows for the spring basketball tournaments, may not be the best option. The home that fit you when you were single, may not be suitable for your family of 5. A family home for an empty nester may be just too much work. There are many crossroads in our lives where we find that our house does not fit our lives. Sometimes our home is not the home that we want or like, but we love the neighborhood. What to do?

Unfortunately, the current economy doesn’t make questions of moving clear cut decisions. We don’t have a fool proof test that tells you when to move or remodel your existing home, but we will try to give you some of our thoughts.

I tend to think of homes as reusable shells. Sometimes that shell needs to expand or change, which brings up a lot of questions. If you bought when the market was a seller’s market, it may not be feasible financially to move to a better fit. If your house is the right size and location you may be able to renew your shell by redesigning or remodeling, to better suit your updated needs.

If moving is your answer, we can meet with you and give you a free competitive market analysis that will tell you what the market shows as a listing price for your property both as is and with any additional potential changes. We also coordinate automated searches that give you listings of homes that meet your physical needs, are situated in the areas you love, and are in locations with schools, jobs, church, or anything else that plays an important role in your life.

Next, let us show you homes that meet your physical needs. We find it helpful to be in homes during private showings so you can explore the home and your feelings, with time to relax and think about the process.

After considering all the options, you can make your decision to move or improve.

Remember, your changes may not always be seen as improvements to a buyer. For instance, a finished upper level bedroom may not be as desirable if there’s no bathroom. Some things are safe to do: an expanded garage, updated master bath, new kitchens, and central air are always safe investments. See the article on Cost vs. Value to see what the improvement may mean to you.

We are including several links for you to explore. It’s important to get a bid for each job, in writing. Be prepared for the unexpected. Plan, plan, plan and then plan. If you can camp out at a cabin or with family or friends, it’s worth it for both your comfort and the contractor’s convenience. I am an interior designer and one of the hazards of living with me is my love of the design process. My family has endured many projects and we don’t look back on them as the most relaxing times in our lives but I loved the challenge and we all loved the finished results!

Dick & Gleni Sprague
Coldwell Banker Burnet
Dick: (612) 827-9473
Gleni: (612) 827-9474
Gleni Cell: (612) 227-6565
www.SpragueHomes.com