In December 2009, my sister and I received 50 percent ownership of our mother's home through probate court (tenants in common.) We decided to try and live together in the house. I have come the realization that I can no longer live in harmony with her and her family, and now I have just been informed that my job is re-locating. My sister does not want to sale the house. I have no problem leaving, but I need to be sure that I will not lose anything. I heard that if I leave, I will forfeit a big amount of my equity. Is that true? I wanted to have an agreement written up, that will basically say that she will resume responsibility of paying the mortgage in full every month as well as any repairs of the property and that if she fails to make a payment over 30 days, that she will agree to sale the house. I don;t want to force she and her family out, that is why I looking for any other avenue I can take to keep this amicable. She does not have the money to buy me out and her credit is poor, so she can't get a refinance loan.
Thank you.
Mr. Sher's should be more selective in what questions he answers so that his answers are more useful and correct. You are right to be concerned about your situation. Mr. Shers is correct that absent any agreement, your sister is only obligated to pay 1/2 of all expenses. He is also right that you do not give up your half ownership interest. That does not, however, mean that you won't lose equity. Because your sister is only obligated to pay half of the expenses of the property, when you move out and she starts paying all the expenses, if you don't have an agreement then she starts accumulating reimbursement rights against your half. For that very reason it is common for tenants in common where one is going to occupy the premises and the other is not, to have exactly the sort of agreement you are proposing.
Mr. Sher's should be more selective in what questions he answers so that his answers are more useful and correct. You are right to be concerned about your situation. Mr. Shers is correct that absent any agreement, your sister is only obligated to pay 1/2 of all expenses. He is also right that you do not give up your half ownership interest. That does not, however, mean that you won't lose equity. Because your sister is only obligated to pay half of the expenses of the property, when you move out and she starts paying all the expenses, if you don't have an agreement then she starts accumulating reimbursement rights against your half. For that very reason it is common for tenants in common where one is going to occupy the premises and the other is not, to have exactly the sort of agreement you are proposing.
