You don't have to consult with an attorney to buy property with someone, and many choose not to since they feel it makes a close friendship or family relationship feel like a business transaction. But there are intricacies and pitfalls to co-ownerships that can trip up the best of pals.

Some items an attorney can help with include:

• Forming an Entity -- It may be in your best interests to create an LLC (limited liability company) or a trust to actually hold the property's title. This can make moving owners on and off the title easier. If you do create a trust or LLC, let your insurance carrier know to prevent any liability or property loss problems if those occur down the road.


• The Ownership Agreement -- Spelling out the responsibilities each party needs to live up to is crucial. This can cover everything from how and when the mortgage is paid to what happens when a plumber is needed. Is the cost covered by everybody or by the partner who clogged up the drain?


• The Cohabitation Agreement -- If you and your partner(s) are planning to live in the house full time, this paper can set some boundaries like rules about pets, who buys furniture and appliances, what friends and family can spend the night, etc.


• Is This Place For Rent? -- For vacation properties, some owners may want to rent the house while it's not being used to make a little cash. An attorney can help outline the local landlord/tenant laws and give you some direction about additional insurance that may be needed.

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