What You Need to Know Before You Buy as an Unmarried Couple
More couples than ever are choosing to buy homes together before getting married—or without any intention of marrying at all. In today’s housing market, where rising interest rates and home prices make timing crucial, the decision to purchase as an unmarried couple can seem both practical and financially strategic. However, buying a home together is a major legal and financial commitment, and unmarried couples don’t have the same protections as married couples when things go wrong. That’s why it’s important to fully understand your options before you sign a purchase agreement, apply for a mortgage, or open escrow. At Exact Escrow in La Verne, we routinely assist buyers with nontraditional arrangements. Whether you’re planning to tie the knot later—or just want to build a future together without legal marriage—this guide will walk you through key considerations for buying a home as an unmarried couple in California.
Step One: Talk About Ownership Structure for Unmarried Couples
Before falling in love with a property, talk through how each of you plans to hold title. In California, you have several options for taking ownership:
- Joint Tenancy
This arrangement gives both parties equal ownership. If one partner dies, the other automatically inherits the other’s share, regardless of what the will or estate plan says. It’s simple—but it also means you each have the same rights and responsibilities, even if one person contributes more financially. - Tenants in Common
This option allows couples to split ownership unequally (e.g., 70/30 or 60/40), which is helpful when one partner puts up a larger down payment. Each party can leave their share to a different beneficiary in a will, and there’s no automatic inheritance. - Sole Ownership
Sometimes, one partner purchases the property and assumes all legal ownership. This can be risky for the non-owning party and usually only makes sense in specific financial or legal circumstances.
Choosing the right form of ownership can affect what happens if you break up, refinance, or sell the home. It can also impact estate planning and tax implications, so it’s worth discussing with a legal or financial advisor.
Step Two: Decide How an Unmarried Couple Will Share Costs
Before making an offer, it’s critical to talk about how you’ll split the costs of buying and owning a home. That includes:
- Down payment
- Mortgage payments
- Property taxes
- Insurance
- Maintenance and repairs
- Utilities and household expenses
Put your agreement in writing—ideally in a cohabitation property agreement. This document outlines who owns what, how expenses will be shared, and what happens if the relationship ends. It’s not romantic, but it protects both parties.
Escrow companies like Exact Escrows handle the logistics of real estate closings—not personal legal disputes—so it’s smart to address these issues upfront before you open escrow.
Step Three: Apply for a Mortgage as an Unmarried Couple
If you’re applying for a mortgage together, both of your credit scores, incomes, and debt levels will be considered. This can work to your advantage—two incomes often help you qualify for a larger loan.
However, both parties will be equally responsible for the full loan amount, even if one person loses their job or wants out. That’s why it’s important to:
- Review both credit scores beforehand
- Decide who will be on the mortgage and/or the title
- Understand how your contributions will be protected
In some cases, couples choose to apply for the mortgage in just one name to secure better terms. Just be aware that the person not listed on the mortgage may not build credit from the loan payments.
Step Four: Work with an Experienced Escrow Company if You’re Part of an Unmarried Couple
Escrow is one of the most important parts of the home-buying process, especially for unmarried couples. At Exact Escrows, we help buyers navigate the closing process with transparency, precision, and care.
Once your offer is accepted, escrow manages the neutral handling of:
- Purchase funds and deposits
- Title reports
- Loan documents
- Tax and insurance information
- Final disbursements
We’re not legal advisors, but we work closely with your agent, lender, and title company to ensure everything stays on track. We also make sure both parties understand what they’re signing and what to expect at closing.
Step Five: Plan
Buying real estate as an unmarried couple means thinking ahead. What if you break up, one of you wants to sell, or life circumstances change?
Here are some questions to discuss:
- Will one person have the option to buy the other out?
- What happens if one of you wants to move and the other doesn’t?
- How will you divide the equity if you sell?
Will you both be responsible for ongoing mortgage payments if you split?
The best way to answer these questions is with a written agreement that covers all eventualities. Think of it as relationship insurance—it protects both of you and gives you peace of mind.
Benefits of Buying as an Unmarried Couple
Despite the complexities, buying a home together before marriage can have some advantages:
- Affordability: Two incomes help with qualifying and affordability
- Flexibility: You’re not locked into marital laws that may not fit your values
- Customization: You can tailor your agreement to suit your unique situation
And for many couples, owning a home together is an important step in building a life—whether marriage is part of the plan.
Common Mistakes to Avoid in Buying as an Unmarried Couple
When buying as an unmarried couple, be sure to avoid these common pitfalls:
- Assuming equal ownership without confirming it in writing
- Not creating a cohabitation agreement
- Overlooking the importance of a will or estate plan
- Relying solely on verbal agreements
- Ignoring each person’s credit or financial obligations
Working with professionals—from escrow officers to real estate attorneys—can help you avoid these costly missteps.
About Exact Escrow in La Verne, California
Exact Escrow is your trusted partner for professional escrow services in Southern California. Based in La Verne, we bring decades of expertise to manage your transactions efficiently. Whether you’re buying, selling, or refinancing, our team is committed to providing reliable, detail-oriented support. Contact Exact Escrow for smooth, stress-free escrow services tailored to your needs.
