One of the biggest investments any of us will make is buying a home. But the cost is so large today that most of us cannot afford to buy a home by ourselves - we need help from spouses or family, not just the bank. So how do you protect your investment?

Lenders, including family members, can protect themselves by securing their loans with mortgages registered on the title to the home. When the home is sold, for any reason, all the lenders with registered mortgages will exchange a mortgage discharge for repayment of their loan, so the buyer receives the title to the home clear of all registered mortgages.

Spouses, and other investment partners, can also protect themselves with a written agreement specifying how their cash or other contributions will be reimbursed and then how the net sale proceeds will be distributed.

Of course, the best time to make an amicable agreement is before there is any dispute. The key to reducing disputes in the future is to make your agreement now in writing to confirm all the agreed facts and expectations of both parties.

An agreement with a lender that is registered on the title of the home is usually in the prescribed form of a Mortgage that is accepted by the BC Land Title Office (LTO). The terms of the mortgage for any lender can be the LTO prescribed terms or custom terms the lender's lawyer drafts. Regardless of the type of document, before you sign you should always read all documents and have independent legal advice (ILA) to reduce misunderstandings.

An agreement with a spouse, before there is a dispute, can go by many names such as Pre-Nuptial, Cohabitation or Marriage Agreement. Again, to reduce expensive disputes from misunderstandings and disappointments, you want to confirm all facts and expectations of both parties in writing.

Without a written agreement confirming your assumptions about any relationship, you could be surprised by your “roommate” now claiming they are your common-law spouse thus entitled to half of your home equity.