While decades ago most buyers were married, today singles make up about one-third of the market, driving the recovery.

But they’re not doing it single-handedly.

A Coldwell Banker survey finds that 13 percent of singles own their home jointly with another person, with half of that segment owning with their parents, reports Diann Patton, Coldwell Banker consumer specialist. Many more singles are relying on some sort of help from friends or family to afford their purchase.

“It’s the new normal,” observes Dawn Cordiner, of ZipRealty, Portland.

The result: There’s no standard template for how to afford and legally hold title to a home.
With more creative transactions comes a need for “honest and open communications” between the parties, so that all are clear about the many financial issues, notes Charlotte McConnell, a broker with RE/MAX Destiny, Elk Grove, Ill.

Here are some talking points for singles taking a multiple approach to buying:

Finessing Financing
Parents and an adult child, friends, partners buying for investment, siblings – no matter who’s teaming up, a lender will step back and ask, “What is the property being used for?” explains Jim Linnane of Wells Fargo Home Mortgage.

If, for instance, the parties who are buying a home both plan to live in it then the incomes of both are counted when calculating how much mortgage is affordable. But unless borrowers are seeking an FHA mortgage, only the income of the borrower who will be living in the home is usually considered, says Linnane.

However, he adds that parents or other parties often help a buyer “strengthen” their loan application by acting as a co-borrower, also known as “co-signer.” By signing on, the co-borrower agrees to make payments if the borrower defaults.

Providing money for a down payment is another way to help. Lenders will want to ensure that the funds are a bona fide gift, and not a loan to be repaid, notes Linnane.

Looking At Legalities
Years ago, the majority of buyers were married, and practices for holding title and other legalities grew around this group. That doesn’t mean, though, that contracts can’t be crafted for individual circumstances.

Indeed, partners can have lots of unique concerns, from what would happen if they don’t want to continue owning the home together to who should pay the utility bills.

How they hold title will depend on these concerns and the intricacies of laws in their state, so singles buying together should consult an attorney, notes John Trott, a Los Angeles lawyer. It may also be necessary to craft a contract, spelling out specifics like who pays the bills and what happens if the partners don’t want to live together anymore.

Absent such formal agreements, partners may not be able to work out contingencies amicably and end up in court.

Jim Gramata, a Chicago agent with @Properties, suggested a formal contract to two sisters who bought a condo a couple of years ago. “They said, ‘We’ll just sell if anything happens. Now, one is getting married, and they can’t sell at a profit. Fortunately, the one getting married is buying her sister out and living in the condo. But if could have been nasty.”

Minding The Money
Most singles buying together have a good relationship, real estate agents report. But money has a way of disrupting even rock-solid rapport.

Keeping a good accounting of expenses, and following your pre-arranged agreement smoothes the way. It also may help at tax time. In its Pub-lication 17, the IRS lays out instruct-ions for multiple home-owners to help each claim part of the mortgage interest deduction.