Thinking Of Purchasing A Vacation Home With Friends?
Do you enjoy vacationing with friends or family? If you and another couple, or you and a friend love visiting Orlando together on a yearly basis, it only makes sense to purchase a home for sale in Reunion to save money. However, as your Luxury Orlando Real Estate team, we know that owning a joint home with friends or family can either be a really good decision, or one that you might regret. That’s why we’ve come up with a few tips to make sure your joint purchase runs smoothly and carefree.
1. Draw Up a Written Contract
One way to guarantee you and your investment partners stay within your agreement is to draw up a written contract. Sit down with your friends or family and draw up a few bylaws that each partner must agree to. The contract should include how the weeks or months are split up between all the partners, how any disputes are managed, how expenses are handled, and how to handle any property damage caused by another partner or a renter who rented from another partner.
2. Seek Advice From an Attorney
An attorney will be able to advise all partners on many aspects, especially loan questions. If one of the partners default on a loan payment, you can turn to your attorney. Confer with your attorney about forming an LLC to protect yourself and the other partners from losing the property if something happens at the fault of a partner.
3. Set Up an Escrow Account
An escrow account will come in handy for you and your partners. If all the partners fund the escrow account enough to cover any bills for a few months in advance, the account should have enough to spare to pay for any unplanned expenses. An escrow account will also prevent your partners from borrowing money from someone for their share.
4. Don’t Forget an Exit Strategy
When buying a Reunion home for sale with friends or family, it’s important that all partners talk about their goals for the home as well as set up an exit strategy. If you or another partner want to exit as a partner, it’s better to have a plan set ahead of time than go through the hassle of a dispute later down the road.
To schedule a consultation with the Luxury Orlando Real Estate team, please call us today at 407-705-7635 or submit our contact request form.