Co-ownership nightmare during sale

[Martin Em]

What is the name of your state? California

My partner co-owns his home with his brother and sister-in-law. All 3 names are on the title. the brother made initial down payment on the house. My partner later gave 10K toward down. Partner & his brother had gentlemen's agreement to invest in property - no contract. Both would pay half the mortgage until sale of prop. This is a horse property, and for 3 years, partner paid no mortgage while living in outside tack room with father. Brother/sis-in-law moved out to buy their own home. Partner stayed. Both have paid half each of mortgage since then. Partner has put approx. $25k of improvements into home, brother about $15k. Partner never got any tax benefits, except for last year. Now, after sale of home, how do they decide who gets what from the profit? Brother refied twice, but never pulled out any money. Is the only fair way to decide how to divide the final sum by hiring a real estate arbitrator?

[HomeGuru]

Originally Posted by ****** Em

What is the name of your state? California

My partner co-owns his home with his brother and sister-in-law. All 3 names are on the title. the brother made initial down payment on the house. My partner later gave 10K toward down. Partner & his brother had gentlemen's agreement to invest in property - no contract. Both would pay half the mortgage until sale of prop. This is a horse property, and for 3 years, partner paid no mortgage while living in outside tack room with father. Brother/sis-in-law moved out to buy their own home. Partner stayed. Both have paid half each of mortgage since then. Partner has put approx. $25k of improvements into home, brother about $15k. Partner never got any tax benefits, except for last year. Now, after sale of home, how do they decide who gets what from the profit? Brother refied twice, but never pulled out any money. Is the only fair way to decide how to divide the final sum by hiring a real estate arbitrator?

**A: yes, that is one method if all parties cannot agree.

[Martin Em]

Thanks for such a fast reply, HG. The brother is demanding that my partner pay him for the time he paid no 'rent' while living in the tack room with their father (FYI, it is not a 'finished' room, roof leaks, etc.). The brother received all the tax benefits for 9 out of 10 years. Partner handled all upkeep of property during that time. In your opinion, shouldn't the lack of tax benefits to my partner and the missed 'rent' owed to his brother essentially cancel eachother out?

[HomeGuru]

Originally Posted by ****** Em

Thanks for such a fast reply, HG. The brother is demanding that my partner pay him for the time he paid no 'rent' while living in the tack room with their father (FYI, it is not a 'finished' room, roof leaks, etc.). The brother received all the tax benefits for 9 out of 10 years. Partner handled all upkeep of property during that time. In your opinion, shouldn't the lack of tax benefits to my partner and the missed 'rent' owed to his brother essentially cancel eachother out?

**A: it is hard to gather the facts and variables and do trade-offs and even stevens. Suffice to say, everything is negotiable. There is going to be a lot of give and take for things to work out in a win-win-win situation.