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  1. #1
    bornitz is offline Member
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    Question letter of intent to quit claim

    What is the name of your state? California

    Hi, Thanks in advance for your help.

    I share a house with someone who's not related (Joint Tenancy WROS) and would like to buy them out for 120k. They have agreed (although the word partition suit and sale have come up numerous times), but they need 20k up front to move out and get settled.

    I have the 20k ready to go, but want them to sign some kind of letter of intent to Quit Claim the property over to me when the balance (100k) is paid.

    Because of the deterioration of the relationship, I'm concerned that if I just hand over the 20k, they will turn around and sue me and force a sale instead of just taking the money and running since they never contributed to the mortgage or prop tax.

    My paralegal friends said that the lawyers they work with suggest that I turn the actual transfer of title, etc. through escrow, which I plan to do. This is to cover title policy, deed tranfer, etc.. I am fine with this.

    Meanwhile, where can I find a document that will stand up in court if she renegs after receiving the 20k? I'm just at a loss and am being pressured for the money.

    Thanks in advance,
    Bonnie
  2. #2
    HomeGuru is offline Senior Member
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    Quote Originally Posted by bornitz
    What is the name of your state? California

    Hi, Thanks in advance for your help.

    I share a house with someone who's not related (Joint Tenancy WROS) and would like to buy them out for 120k. They have agreed (although the word partition suit and sale have come up numerous times), but they need 20k up front to move out and get settled.

    I have the 20k ready to go, but want them to sign some kind of letter of intent to Quit Claim the property over to me when the balance (100k) is paid.

    Because of the deterioration of the relationship, I'm concerned that if I just hand over the 20k, they will turn around and sue me and force a sale instead of just taking the money and running since they never contributed to the mortgage or prop tax.

    My paralegal friends said that the lawyers they work with suggest that I turn the actual transfer of title, etc. through escrow, which I plan to do. This is to cover title policy, deed tranfer, etc.. I am fine with this.

    Meanwhile, where can I find a document that will stand up in court if she renegs after receiving the 20k? I'm just at a loss and am being pressured for the money.

    Thanks in advance,
    Bonnie
    **A: and why didn't your paralegal friend advise you to get an attorney to draft the agreement.
  3. #3
    bornitz is offline Member
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    Oct 2004
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    it's too late

    Thanks. She didn't think an attorney was necessary to draft a document like this. It's too late, I wrote her a check for 20k and she gave me a promissory note of repayment as part of a buyout of her interest of our property. She originally put in "50%" but I had her remove it for two reasons...

    1. Joint Tenancy implies 50% and
    2. Since I made all down, mortgage and prop tax payments, I disagree with this percentage and if we can't work it out amicably (sp?) I will have to just accept the fact that I will lose the house when I file for partition. It's a terrible position to be in, but I can only blame myself for putting her on title to begin with and will have to accept the consequences.

    The sad part is that if I'm forced to file partition, she'll end up with less than what I'm offering her after legal and realtor costs. It's really a shame.

    Thanks,
    Bonnie
  4. #4
    HomeGuru is offline Senior Member
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    Quote Originally Posted by bornitz
    Thanks. She didn't think an attorney was necessary to draft a document like this.

    **A: then you should not take legal advice from ever again.
    *******

    It's too late, I wrote her a check for 20k and she gave me a promissory note of repayment as part of a buyout of her interest of our property

    **A: then guess what? You have no additional secured interest in the property.
    But then you knew that already right?
    ********

    . She originally put in "50%" but I had her remove it for two reasons...

    1. Joint Tenancy implies 50% and

    **A: NO it does not. There could be JT with one owner having 1% interest in the property and the other owner 99%.
    **********


    2. Since I made all down, mortgage and prop tax payments, I disagree with this percentage and if we can't work it out amicably (sp?) I will have to just accept the fact that I will lose the house when I file for partition. It's a terrible position to be in, but I can only blame myself for putting her on title to begin with and will have to accept the consequences.

    The sad part is that if I'm forced to file partition, she'll end up with less than what I'm offering her after legal and realtor costs. It's really a shame.

    Thanks,
    Bonnie
    **A: yes, it's a shame.
  5. #5
    bornitz is offline Member
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    Unhappy ok, please help me out here...

    you said.. **A: then guess what? You have no additional secured interest in the property.
    But then you knew that already right?

    I do not understand real estate/legal terms. Please tell me what secured interest means.

    ===========

    you said... 1. Joint Tenancy implies 50% and

    **A: NO it does not. There could be JT with one owner having 1% interest in the property and the other owner 99%.

    ok, so the house is worth 600k, outstanding loan is 200k, that leaves 400k and I put 60k down, made all mortgage and prop tax payments. So are you saying that I can still request more than 400k - 60k divided by 2 (170k) since I have proof of all payments? If so, would this be through a partition action?

    Also, since I already loaned her 20k to help her move, am I no longer entitled to fight for my fair share? Would a judge simply through it out because of her promissory note?

    Please help. I'm at a loss.

    Thanks so much!
    Bonnie

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