Long story but it’s about to settle and we are having relationship issues.
My parents were going to pay for 25% of it with a bank transfer.
Is there any stat dec they should be getting?
Purchased a Block of Land with My Partner and Shit Has Hit The Fan
Jumpup on 21/07/2020 - 22:09
Comments
I can’t pull out we would lose a 50k deposit
In that case it would be best to seek legal advice (as stated below).
Better to lose $50k now, than way more down the track.
Just make sure you "pull out" the other way then.
In more ways than one
Speak to a lawyer ASAP.
See a lawyer
Document this as a loan from your parents which is repayable with set repayments and interest etc.
25% of the total - then you and your partner were going to split the remaining 75%?
If this is the case maybe draft up a legal loan document with commercial terms between you guys and your parents (I.e. it is a loan not a gift, interest will be charged, loan term is set etc). So if things do end badly, you will have to sell the land, repay the loan and then split the proceeds/deficit.
He is paying 25% cash and borrowing 25%. I’m paying 25% cash and parents giving me the rest of the 25% as cash since I can’t borrow any money at the moment.
Is there any risk here? Borrowing VS cash (bank transfer I mean)Ahh ok, so you guys are ultimately contributing 50/50. I think the risk would be if the price of the land falls - I assume the bank would have first dibs into proceeds before both your cash contributions. Maybe in your loan agreement with your parents, you guys need to make clear that after the bank takes their share, your parents are to repaid, then you guys split the rest.
I hope things work out!
When we bought our first property my in-laws gave some money. They had a lawyer draw up a document to the effect that if we split there were some terms whereby I had to pay back my portion of the "gift" etc etc as part of the settlement etc …..was a pretty standard document that didn't cost much
But wouldn't that mean you own half the property anyway?
Sorry to hear about the relationship trouble. Hope you guys can work it out.
Suggest get a lawyer as other suggested. You both could also agree to settle (may be build) and then sell. Take your share of profit (or minimal loss) and walk separate ways of it is not working out..
if OP is still in talking term with her ex. this is probably a better option. could hold it until the price has improved before selling it.
Do your parents tie your shoe laces for you too?
$50k now or 50% later. Jump ship while you can.
Continue on your own if you can.
I would get them listed as 25% owners in the deal. Then if there is a split and he is trying to shaft you, you can go after 50% of the remaining 75%.
Ask your self is sticking to this deal worth it?
You might end up in a situation where you can’t sell the land and can’t access the money you need
This investment will not get you any cash flow so unless you have deep pockets you should pull out or find alternative finance and go soloGood luck
I’d pull out of it and wait until the relationship issues have settled.