It Pays to Be Thorough
With Property Planning

Question: My son and his friend are buying a condominium for $350,000 in Boston. They plan to share the down payment and monthly expenses equally. Should they put this agreement in writing?

-- Anna, Providence, R.I.

Anna: Your son and his friend definitely need a shared-ownership agreement in writing, which should be properly prepared by a local attorney. A well-constructed agreement should clarify the source of all of the money that has been invested, the method of payment for ongoing expenses (such as mortgage payments, taxes and insurance), who will be responsible for repairs and maintenance and, very importantly, how much each party will receive when the property is sold.

It should also contain clauses that prepare for the unforeseen, such as if one person decides to withdraw from the agreement or dies. It can be written in such a way that the property either passes to the other partner -- though this isn't commonly done for people who aren't close relatives -- or is passed on to survivors. This is a significant investment, so your son and his friend should know exactly what they are getting into.

-- Mr. Irwin has more than 25 years' experience as a Los Angeles-area real-estate broker. He is the author of more than two dozen books about real estate and is recognized as one of the most knowledgeable writers in the real-estate field. Mr. Irwin's most recent books are "How to Get Started in Real Estate Investing" and "How to Buy a Home When You Can't Afford It" (McGraw-Hill, 2002).

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