Nephew buying a home

[Disabled Vet]

Question Please for my nephew..

Nephew has been doing very good in saving. Now at the age of 21 he has enough money saved to put down 20% on a home purchase. He has found a home, applied and recieved a loan, everything is on track for a closing by end of June on this home.

He and his girl friend (1yr) are planning on moving into this home together. I have suggested to both of them that they should draw up a rental agreement between him and her. Since the home is only in his name and HIS MONEY he needs to agreement to protect himself. They have agreed to her paying half of the monthly payment, half of utilities. Now.... The loan officer said "Since he is still going to be living there it is ok for him to have a rental agreement for a roommate." Is this the proper way for him to protect himself for the just in case break up? She agree's because it's still going to be a lot cheaper then where she is living now. I just want to make sure he is protected.......

Any thoughts?
Thanks

 

[mightymoose]

Not necessary. Without a specific agreement he is still covered by statute. Besides, having her sign it signals that her stay there will be temporary and isn't that great for a relationship. If they break up she will either leave willingly or he will have to evict her. The options are the same with or without a lease.