Relative is close but not immediate family like parent/sibling, been working overseas most of life and came back couple of years back to dive into property game. Relative requested joint name for loan application to boost loan approval possibility. This is due concern of not having local credit history, relative bought car and didn't managed to get loan so paid full in cash. Target property is a commercial property. Myself, I don't have a property loan or car loan.

There is an importance for loan approval since relative is interested in an auction property. Serving for loan and management of property will be done 100% by relative. Basically just want to make use of my local credit history.

Would like to know what are the risks and measures I can protect myself, there is little doubt that relative can serve loan - but life happens.

Legal implications:
1. Bank loan - since my name is in it, the bank can come after me and declare me bankrupt in the event of default correct?
2. I should request my name to be in the S&P as well? I'm aware there will be transfer fee to remove my name in the future. What other legal implications do I bear if my name is in S&P? Example, if property is rented out and tenants are caught doing illegal things
3. I read that co-owners of a property can have a Joint Ownership Agreement, but it doesn't solve (1) and (2) correct? It mostly covers who pays loan/maintenance as well as what to do with property in event of fall-out/disagreement/death?

Future home loan eligibility/DSR
1. Does it affect my DSR? If yes, is it my half the amount of monthly loan repayment?
2. Will my first home be considered "2nd property" by bank?

Tax:
1. Am I liable for RPGT if relative disposes property within 5 years?

Feel free to add more points for consideration, I'm not too familiar with the property world.

This post has been edited by roarus: Apr 25 2021, 10:29 AM

My priority at the moment is finding out legal/tax implications due to default and property sale later, and what measures can be done for protection

This post has been edited by roarus: Apr 25 2021, 03:12 PM

Thanks for the input, I guess in the event the other party unable to serve loan - whatever in JOA also no use since I sue the person also no money pay.

Want to clarify, for this "first joint" commercial property also affects it?

I thought only residential property will be taken into account

Thanks for the detailed 20 sen, I like point #2.

I'll give this "opportunity" a pass since I deem the timeline too short to make a rational decision