In a civil partnership, married or cohabiting? You're ready to embark on a real estate project together. It's important to be cautious and organize the acquisition of your home according to your situation. Choose the best option to prevent issues in case of disagreement or life accidents.
First step: Financing!
Rest assured, applying for a loan together is easier. For banks, your situation is more secure in terms of income and represents a higher investment capacity. A couple also represents future opportunities for the bank, a growing family, and projects that lead to the opening of other accounts. With a solid file, you can also benefit from more attractive rates! If you are a couple married under a community property regime, your home becomes a common asset, over which you have equal rights. If the regime is different, you own your home in indivision, which can be equal or correspond to each individual's financial investment. When borrowing together, a solidarity clause requires the co-borrower to fully honor the repayment if the other is no longer able to meet their deadlines. In case of issues after this loan, you are still liable for the full loan payment. The simplest solution is to put the property up for sale.
Second step: Choosing the right formula!
If you're married
The community of reduced acquests regime automatically applies to couples who have not made a marriage contract. This regime implies that properties owned by the spouses before the marriage remain their personal property and become separate properties. Properties and incomes acquired by the spouses during the marriage are common properties. If you purchase your home under this regime, the property belongs to you equally, regardless of each one's financial contribution. The universal community regime allows personal properties acquired before the marriage to become common properties.
If under the separation of property regime, you can choose to own the property to the extent of the financing that each of you has provided, by buying in indivision.
By choosing to buy a property in indivision, you can share the ownership of the home, either equally or in a way that corresponds to each one's financial contribution.
You can agree on the terms and management of indivision in case of separation or death, by establishing an indivision agreement between you (established by a notarial deed).
If you're in a civil partnership
For couples who entered into a civil partnership after January 1, 2007, the separation of property regime applies by default. You remain the owners of your own properties and become owners of the home to the extent of your financing. You always have the option of buying the property in indivision to equally distribute the shares.
If you're cohabiting
If you're cohabiting, you are legally considered two strangers. Without arrangements, only the person named in the acquisition act is considered the owner, not protecting the other in case of death, regardless of the financial contribution. 3 solutions are possible: buying the property in indivision, creating a Civil Real Estate Company (SCI), or including a tontine clause in the purchase act.
The Civil Real Estate Company (SCI) is a company created by contract to manage one or more real estate properties. The real estate is then owned by the SCI, allowing you to receive social shares proportional to your contribution and facilitating its management and transmission. This option is to be considered for a real estate investment rather than for purchasing a primary residence.
The tontine is a clause inserted in the purchase act, allowing the survivor to be the sole owner of the property in the event of the death of one of the partners. The deceased is declared as never having been the owner of the property, and it does not become part of the deceased's estate. However, the survivor will have to pay inheritance tax, calculated based on the relationship with the deceased and the value of the acquired share.
Seek personalized advice to give you tailored reflection tracks and find the best formula for your big project!