Buying Property with Your Kids: Kushner Law Real Estate Tips
Buying Real Estate with Your Kids
Given the cost of real estate in Metro Vancouver, more and more parents are assisting their adult children with the purchase of a home. Unfortunately, while the family is eager to lay out welcome doormats, the discussion of the nature of the financial arrangement is not always put into writing. As a result, more and more frequently, these unwritten arrangements become the subject of costly litigation due to changes in family circumstance such as divorce, a family dispute or a death of one of the parties on title.
Common Real Estate Disputes
In order to avoid a costly and messy dispute, it would be wise to take some time at the start of the process to consider what type of financial assistance is being provided. Some the most common circumstances are as follows:
- Are the parents providing a financial gift to the {lucky} children with no strings attached?
- Are the parents providing a low-interest or no-interest loan to their adult children? If so, will the property be registered in the child’s name only and is this gift intended to benefit the spouse of the child as well?
- Are the parents purchasing an interest in the property? If so, what is the nature of the interest and what percentage should be allotted to each party?
Section 23(2) of the Land Titles Act, states that there is a presumption that the person or persons named on title as the registered owners are in fact the owners. The presumption is subject to equitable principles one of which is the enforcement of an agreement between the parties to prevent unjust enrichment if the face of title is upheld. There is also a presumption that in certain circumstances, where property is purchased with funds provided by another person, the person receiving the funds holds the property in trust, this is called a resulting trust.
Looking for a Vancouver Litigation & Estate Lawyer?
The Kushner Law Group in Vancouver BC can assist you in both drafting agreements and protecting your interest should you eventually find yourself in court. As experienced litigation lawyers, we can also assist our clients in achieving just results through both negotiation and litigation.
If you need estate or litigation services, please don’t hesitate to call our Vancouver law firm at 604-629-0432 or click here to contact us online.