Tenants in common percentage split agreement

[Patrick Thomas Dickinson]

Hi bigger pockets folks, 

Closing on a house April 19th, 2022. Me and my girlfriend are trying to come up with a fair percentage split while holding title as tenants in common. Here are the financials. Let me know what you think it should be and your reasoning. Thanks 

Purchase price 925,000 k 

down payment + closing costs +10000$ cash = 85000$ ( I am paying all of this, so I have 85000 into the deal) 

Lending:  We are splitting the loan 50/50 which = 878,750 so 439,375 each 

We plan on paying the mortage 50/50 as well as all house expenses would be 50/50 

Based on this information what do you believe is a fair tenants in common percentage split/ agreement 

Thanks

[Theresa Harris]

You said you are planning on splitting everything 50:50 other than the down payment and closing costs which is your money.  Down the road when you sell the house, either you get the $85K back with a predetermined amount of interest (eg 5%/yr) OR you could do it as a percentage.  So your down payment and closing costs represent 9.2% of the purchase price, when you sell it you get 9.2% of the sales price (after realtor's commission).  Then pay off the mortgage, closing costs and taxes and whatever is left is split 50% each.

You also need a contingency plan if you and your girlfriend should ever split up. The mortgage is in your name, so that means she can't get the house; but what if you want it?

Put it all in writing and have a lawyer or notary witness you both signing it.