Unable to afford homes alone, a growing number of millennials and Gen Z buyers are co-purchasing properties with friends. Here's how to structure the arrangement legally and financially.
Essential Legal Steps
- Co-ownership agreement: covers expenses, maintenance, exit strategy
- Tenants in common (TIC): allows unequal ownership shares
- LLC structure: provides liability protection
- Right of first refusal: when one owner wants to sell
Companies like CoBuy and Husmates specialize in facilitating friend co-purchases. The key is treating it like a business partnership with everything in writing. 73% of co-buying arrangements that fail do so because of undocumented expectations.
