Thinking About Co-Owning a Property with Your Kids?

The housing market in California is notoriously tough, and shows little sign of becoming more affordable any time soon. Increasingly, families are combining resources to purchase or upgrade homes. At Deka Law Group, we regularly advise clients looking to help their children get a first foothold in the housing market, or find a more economical way for multiple generations to live close to one another.

Many creative alternatives exist, including assisting with a down payment, co-purchasing a property, house-swapping or adding an Accessory Dwelling Unit (ADU) to an existing property. Whatever the approach, it is important to carefully consider the potential outcomes and develop a clear written game plan for how this valuable property will be handled in the future. We can help you identify and evaluate key issues such as:

Whether to contribute with a gift or a loan
How to title the property to reflect the true ownership and to avoid probate
Impacts of having parents co-sign a child’s loan
How to maintain current property tax rates and minimize other taxes
Rights to live in and use the property
How will mortgage payments, property taxes, insurance and maintenance costs of the property be shared
Who pays if major renovations or additions are made
What happens when the property is eventually sold
Whether equivalent gifts should be made to other children, during life or after parents pass away

If you are considering partnering with family on a home, we are here to help with these and other questions. Please contact Deka Law Group at [email protected] or 626.765.6272 and let us help you develop a property ownership plan that suits your family.

By Kristen Terranova