My sister and I will be closing on our first home next week. The mortgage is under my name only, but my sister will be contributing 30% of the payments/house finances so we thought it would be fair for her to be on the title as well. My realtor laid out the following options:
Joint tenancy. It would be a 50/50 split which doesn’t reflect our actual contributions, but we would be able to easily add her to the title without the need for a lawyer. Between us we would agree to a 30/70 split of profits if we were to rent or sell in the future.
Tenants in common. We could divide the ownership 70/30 to match our contributions, but I’m not sure we have enough time/money to hire a lawyer to draft the agreement before closing. Is this something we can draft ourselves or use an online template for?
Sole ownership. I would be the only one technically on the title, but we would agree to a 70/30 split of profits if we were to rent or sell the property in the future. If I were to pass, ownership of the property would likely go to her (and in the unlikely event that it doesn’t, she would still be well compensated as the sole beneficiary of my life insurance policy).
Which would be the best route to take? Assuming no unforeseen deaths and that we split profits 30/70 in all options, do any of the options have other financial benefits/disadvantages we should consider?