If my name is on the deed with 3 others and not the loan, what rights do I have?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my name is on the deed with 3 others and not the loan, what rights do I have?
My mother, stepfather and I bought a house 7 years ago that has been my primary residence. My name is on the deed but not the mortgage. I have contributed to all expenses but have no record of it.
We also have began to build apoximately a 1500 sq. ft. addition. My mother has paid for the expenses of that entirely. I want out. For whatever reasons, I want 1/3 of the current market value for the property minus the addition. Am I entitled to that? What options do I have? What steps do I take to attain that? Are they obligated to pay me 1/3 of the current market value, 1/3 of the equity or nothing if I want to be bought out?
Asked on September 2, 2017 under Real Estate Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
They are not required to buy you out, unless you had an actual written agreement/contract with your family obligating them to do so. But in the absence of a buy-out agreement, the other owners do not have to buy you out. You can of course try to negotiate a buy out with them--and should. Generally, it would be based on the equity, not the market value, so if you and they can work something out for a share of the equity, that would be the best outcome.
If you can't work something out, you have the right to bring a legal action (lawsuit), commonly called an action "for partition." When the owners of property cannot agree as to what to do with it, a court can order that the property be sold (under a court-supervised, in some way, sale) and the proceeds, after paying the costs of sale and any mortgages, HELOCs, liens, taxes due, etc., be split between the owners. There can be adjustments for *provable* excess payments or contributions by one person, but you must be able to prove them. In the absence of such provable contributions, one of three owners would get 1/3 of the proceeds of sale after paying the costs of sale, loans, etc.
Of course, bringing a lawsuit like this can itself be expensive; will take months at a minimum; and will undoubtedly caused family strife--it is MUCH better to work things out voluntarily, even if you end up getting less than you hope. If you want to explore the lawsuit option, speak with a real estate attorney.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.