Buying a house as a couple: How to legally protect yourself in the division of costs?

If you need assistance with issues related to housing credit, you can always turn to a credit intermediary for free, such as Poupança no Minuto. But better understand how to proceed in this specific matter next.

I will buy a house with two, but I will give a higher value. What happens?

If you are still going to buy the house with another joint owner, and have a higher available capital to contribute to the purchase of the property, there is a preventive solution to establish equality between parties.

In these cases, when writing the property deed, with or without a housing loan, they can proceed with the division of the house property, corresponding to the percentage of value that each one gave. That is, if the property costs 200,000 euros, and you paid 150,000 euros, while the other co-owner paid 50,000 euros, they can agree that the property will be 75%/25%, respectively.

This is a prevention situation to protect yourself before the purchase of the property, but what happens when you have already acquired the property without division?

I already bought a house for two, but only I paid. What now?

This is a common situation: When a house is purchased with more than one holder, but the necessary down payment or total purchase amount is paid only by one of the borrowers, there is an inequality. This occurs in cases where the paying borrower expects the other to pay a portion of that amount later.

If you agreed with the other creditor that they would return part of the debt, it is important that the agreement be in writing. So, is there any way to legally protect yourself in this situation? The answer is: Yes!  

What is this entrance value? And what can be done, without just being spoken words, so that the holder who places no value on buying the house commits to paying the amount?

Mortgage credit: What is the necessary down payment amount for buying a house?  

Clarifying, first, the down payment required for buying a house: This happens when applying for financing, requesting a mortgage loan from a bank.  

This is because currently, banks do not loan 100% of the value of a property, but at most 90% for permanent own housing and at most 80% for secondary housing (of the lower value between acquisition or appraisal).

That is, imagine that the property, for own and permanent housing, has a acquisition value of 300 thousand euros and an evaluation value of 310 thousand euros. If the bank lends you 90% of the lowest value, you still need 30 thousand euros (10% of 300 thousand) as the amount you will have to give as down payment to buy the house.

So, if you buy this property with another borrower, and pay off the 30 thousand euros alone, the second borrower will have to repay you 15 thousand euros (if they decide to split equally). But how to ensure that you legally receive this value back?

How do I legally protect myself to receive part of the money back?   

In the end, how can one legally protect themselves in cases where they want to split the value, either for the property's down payment or for the total purchase value of the house? By resorting to a contract that is later legally recognized. Let's explain:

In cases where a home loan is contracted by two people, married or not, without being legally married or in a civil union, or even in the purchase of the house without financing, it is complicated to have guarantees between the amounts paid because these are not situations provided for in the law.

That is why one should proceed with a legal contract, where the situation is defined, along with the respective values already paid and to be paid, and by whom.

This contract can be drafted by the parties themselves, for example through a template, but it must always be legally recognized by a notary, lawyer, or solicitor.

You can use, for example, a template of agreement for acknowledgment of debt and payment agreement, to be signed by both parties and then legally recognized.

This contract, when acknowledged by the notary, lawyer, or solicitor, is valid so that if not complied with, it can be brought to court. Therefore, even knowing and trusting the other party, if something goes unexpectedly and unforeseen, this document ensures that you are legally protected and receive repayment of the debt.

Need help moving forward with this procedure? The credit intermediaries of Poupança no Minuto can take care of everything for you, without worrying about paperwork, bureaucracy, communication, or challenges in the credit process. Simulate now and proceed with the process today: