By Julie Holdsambeck | Associate Broker, eXp Realty | Central Alabama
Updated October 2026
When parents and adult children buy a house together in Alabama, the most important decision is how your names go on the deed. If you want the home to pass straight to the surviving owners, Alabama law requires the deed to say so clearly. If not, you’re usually treated as tenants in common, and each person’s share goes through their own estate. A written co-ownership agreement and an Alabama attorney can save your family a lot of heartache later.
This post is for education only. It isn’t legal or tax advice. Talk with an Alabama attorney and a CPA about your own situation.
Why are more families buying homes together?
Mostly to take care of each other.
In NAR’s 2025 Profile of Home Buyers and Sellers, 14% of buyers bought a multigenerational home. Their top reasons were caring for aging parents (41%), saving money (29%) and adult children moving back home (27%) (NAR).
Pew Research found that 18% of Americans lived in a multigenerational home in 2021, more than double the share in 1971. Most people living that way described it as positive (Pew Research Center).
So if you’re thinking about it, you’re in good company. But buying together is a lot different from Mom just moving into your guest room.
How should we put our names on the deed?
There are two common ways co-owners hold title in Alabama.
Joint tenants with right of survivorship. When one owner dies, their share goes to the surviving owner or owners. It doesn’t go through probate for that property. Here’s a biggie. In Alabama, the deed has to clearly say there’s a right of survivorship. If it doesn’t, the share doesn’t automatically pass to the other owners (Ala. Code § 35-4-7).
Tenants in common. Each person owns a share. Shares don’t have to be equal. When one owner dies, their share goes to their heirs or whoever their will names, usually through probate (Nolo).
Which one is right? It depends.
If Mom put in 30% and you put in 70%, tenants in common lets the deed show that. But if Mom dies, her 30% could go to your siblings. Now you co-own a house with your brother.
If you choose survivorship, the house goes to whoever outlives the others. That’s simple. But it can also leave other children out in a way Mom didn’t mean.
This is exactly the conversation to have with an attorney before closing day.
What should a co-ownership agreement cover?
Even when everyone gets along, put it in writing. A family co-ownership agreement, drafted with a lawyer, usually covers (Deeds.com):
- Who paid what at closing
- Who pays the mortgage, taxes, insurance and repairs each month
- What happens if someone wants to refinance
- What happens if someone dies or wants out
- How the money gets split if you sell
It feels awkward to talk about. It’s a lot more awkward to figure out after a funeral.
What happens if one of us wants out?
Life changes. A job moves. A marriage ends. A parent needs more care than the house can handle.
If co-owners can’t agree, Alabama law lets a co-owner go to circuit court to divide the property or force a sale (Ala. Code § 35-6-20). That’s called a partition. It’s expensive, slow and hard on families.
A good co-ownership agreement can lay out a buyout plan first, so nobody ends up in court.
What about the mortgage?
If you’re getting a loan, the lender will have its own rules about who signs and who’s on the title. Everyone who signs the loan is on the hook if the payment is missed (same Deeds.com source).
Rates are high right now. Freddie Mac’s 30-year average was 7.40% on October 15 (Freddie Mac). That’s one reason families combine equity from a parent’s home sale with a child’s income. It can make a bigger, better-laid-out home possible.
What layout works best for a multigenerational home in Tuscaloosa?
The title is the legal part. The layout is the everyday part.
Look for:
- A main-floor bedroom and full bath for the parent
- A split floor plan, so everyone gets some privacy
- A second living area, even a small one
- Few or no steps from the garage or driveway
In Tuscaloosa, homes sold at a median of $274,450 in July, and there were 25.8% more homes for sale than a year earlier (ACRE). More choices make it easier to find a layout that actually fits.
A Story That Might Sound Familiar
One family I helped move across the country to their new multigenerational home had four generations in one location. Their choice was to have one person purchase the property, and the others pay rent and a portion of the monthly bills to that owner.
What works for them is an example of being creative with the finances, but it’s not the only solution. What matters is looking at a specific situation and making adjustments for each individual family.
Another family used 2 bedrooms and a bath to make a suite for an older family member. They removed the tub and replaced it with a walk-in shower with grab bars, and added a dedicated laundry and kitchenette in a hallway nook just for the suite.
Frequently Asked Questions
Can I buy a house with my parents in Alabama?
Yes. Parents and adult children can buy and own a home together in Alabama. The big decisions are how you hold title, who pays for what and what happens if someone dies or wants out. An Alabama attorney can help you set it up the right way.
What’s the difference between joint tenancy and tenants in common in Alabama?
With joint tenancy with right of survivorship, the property passes to the surviving owners when one dies, but the deed has to clearly say so. With tenants in common, each owner has a share that goes to their own heirs. Tenants in common can also hold unequal shares.
Does Alabama have transfer-on-death deeds?
According to Nolo, Alabama doesn’t allow real estate to be passed with a transfer-on-death deed. Many families use survivorship deeds, wills or trusts instead. Ask an Alabama attorney which option fits your family.
What happens if co-owners can’t agree on selling?
A co-owner can ask the circuit court to divide the property or order a sale. This is called a partition, and it can be costly and stressful. A written co-ownership agreement with a buyout plan can help you avoid it.
Do we need a lawyer to buy a home together?
You’re not required to have one to buy a home. But when family members co-own, an attorney can make sure the deed says what you mean and draft an agreement for the “what ifs.” It’s money well spent.
Let’s Talk
If your family is thinking about living under one roof, I’d love to help you find a home that works for everyone. I’ll focus on the layout and the market. Your attorney will handle the deed. No pressure.
Julie Holdsambeck Associate Broker, eXp Realty Central Alabama 205-928-9376 yourcentralalabama.com
Sources
- NAR 2025 Profile of Home Buyers and Sellers
- Pew Research Center: Multigenerational homes (2022)
- Ala. Code § 35-4-7 (Justia)
- Ala. Code § 35-6-20 (Justia)
- Nolo: Avoiding probate in Alabama
- Deeds.com: Parents find new ways to help
- Freddie Mac via GlobeNewswire (10/15/2026)
- ACRE: Tuscaloosa area home sales, July 2026
