Buying with family. Contract a must?

Question

Hopefully looking to close on my 2nd deal within the next couple weeks and was able to get my dad to partner up with me which he has been dying to invest in property. So I am financing under my name and we are putting both our names on the deed. My question is, what kind of contract, if any, should we put together to protect both of us? Should we speak with a lawyer to help us draft one up? Still pretty new and looking to get some perspective from people who may have done similar deals in this way.

Account Closed · Answer

Yes it is more important with family then a business, would you do a business with a stranger?  Well that stranger isn’t going to be coming over for Thanksgiving dinner.

Yes draft up a legal agreement.  One thing to take into account is that when he passes away (because death and taxes will happen) that the share of the property goes to you and you alone.  He can give his other assets to other family members but upon death your investment shouldn’t be diluted.

Only takes a few searches in a county record to see the deed of people that didn’t plan for death.  My largest is 47 people on the deed with 7 estates listed. That property will never make anyone money and will most likely be lost to the fees of an attorney.

Thomas S. · Answer

If one dies there will be a family dispute. Best protect yourselves from vultures. Hire a lawyer to draw a iron clad agreement.

Jason Hirko · Answer

Yes.

Jessica Zolotorofe · Answer

YES! Nothing worse than contention between family members because of business. Have a lawyer draft up a solid partnership agreement. May seem silly now, but could be invaluable one day!

Richard Sherman · Answer

At least have the primary terms written out and signed by both of you.  Just in case life happens you have at least that.  Some people will say always have a contract even with close family, and they are right, and some will say close family should be ok with just a basic understanding written down, and they are also right...Depends on the family etc.