The Legal Consequences of Entering a Property Partnership

Entering a property partnership can be very beneficial to help you get into the real estate business. Many times, people do not have all the money, or the credit, necessary to buy a piece of property on their own. With a property partnership, you can still get involved with the property you want. While it can be beneficial financially, there are legal consequences that you need to be aware of. Many people get into a partnership without thinking about the potential consequences that lie ahead. Here are a few things to consider.

Partner Leaves

When you own a property in partnership with someone else, you are both completely liable for the property. Therefore, if one partner decides to get up and leave one day, the other partner is still completely liable for the property. This means that the partner that is still around would be obligated to make the loan payments, tax payments and insurance payments for it. If they do not, it will hurt their credit severely. 

Partner Consent

Something else that you will want to be aware of is the need for partner consent. If you want to eventually sell the property, you will need the partner to be involved in the sale. 

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