Things to note when buying a property together
Earlier, the author wrote an article about the things you need to pay attention to when buying a property together with your partner. Indeed, even though property prices in Hong Kong have dropped to a certain level, they are still unaffordable for many people. Moreover, “it’s easier to do things when there are more people”. Paying for the mortgage together from one income will not only make the whole process more efficient and secure, it will also improve the overall living standards of both people, and they will not overly compress daily expenses due to the pressure of mortgage payments.
Dealing with the details of ownership in the future
When two people buy a property, they must remember to handle the details of the ownership in the future to avoid the following common situations:
- Failure to clearly define the proportion of both parties’ interests in the property
- Failure to clearly plan for possible future financial situations
- Ignoring the allocation of responsibilities for property repairs and maintenance
Buying a home together is an important financial decision, and ensuring that all details are fully discussed and clear before purchasing can help avoid disputes and problems that may arise later.
Things to note when couples purchase property together
As mentioned in the previous article, a young couple has no plans to get married. Since the husband’s family is responsible for providing the down payment and does not want to use up the couple’s down payment at once, the husband hopes that the property will only be in his name. However, because the man cannot afford all the contributions alone, but the woman is willing to share the burden of mortgage payment, under such circumstances, the woman is relatively unprotected. If a relationship changes in the future, it may make the situation very complicated and troublesome.
Couples can place a peace paper between them
Recently, we encountered another similar case. The situation can be said to be a "subsequent" version of the couple mentioned above. The incident happened that Mr. Chen (pseudonym) had been living together with his girlfriend for many years. The property was in Mr. Chen’s name and the mortgage debt had almost been paid. Later, Mr. Chen unfortunately passed away. Since he and his girlfriend who lived together had not married for many years and did not make a will, Mr. Chen’s property can only be distributed according to the order of inheritance prescribed by law.
Here comes the problem. According to the Intestate Estate Regulations, Mr. Chen’s inheritance order should be his spouse first, followed by his children, parents, brothers and sisters, etc. Since Mr. Chen and Mr. Chen have passed away long ago, and Hong Kong does not accept "de facto marriage", it is difficult for the woman to provide detailed proof of contribution. What makes things even more complicated is that after the man's family learned of the situation, his brothers and sisters, who had rarely interacted with each other on weekdays, "suddenly became enthusiastic" and took care of Mr. Chen's affairs. All this made the woman feel very hesitant. The simplest way for couples to avoid similar problems in the future is to make a peace paper, that is, a will. Even if they get married later, they can let their other half inherit the inheritance and make arrangements and distribution of the property in advance.
Buying a property under shared ownership
As for another feasible approach, it is to purchase the property through "shared ownership".
The importance of both parties working together to provide housing
Although one party will lose the first-time home as a result, this method will provide better protection for both parties in the long run, so as to avoid future changes in the relationship between the two parties or the need to go to court, which will create another expense and psychological burden. Of course, getting married early at the appropriate time can also avoid the related troubles. Therefore, before confirming that two people need to work together to finance the property, it is best for couples to give priority to weighing the ownership disputes that they may encounter in the future. Do not be afraid of trouble or being embarrassed to speak up, which will make future problems more difficult to deal with.
How to avoid title disputes
- Get married early to avoid ownership disputes later on.
- Before joining forces to provide a building, prioritize discussing any problems you may encounter in the future.
- Don’t ignore important discussions because you’re afraid of trouble.