Joint tenants

[jenn19]

What is the name of your state? WI
A friend and I bought a house together five years ago as joint tenants. We share a mortgage and I want to sever the relationship. Though I believe I have enough to buy them out, I know they do not want to sell. I called a local lawyer and need some help to prepare. Besides getting an appraisal, what else should I be doing? I have excellent credit, they do not, if that helps any. Thanks

 

[Just Blue]

What is the name of your state? WI
A friend and I bought a house together five years ago as joint tenants. We share a mortgage and I want to sever the relationship. Though I believe I have enough to buy them out, I know they do not want to sell. I called a local lawyer and need some help to prepare. Besides getting an appraisal, what else should I be doing? I have excellent credit, they do not, if that helps any. Thanks

You would file for a Partition. I advise you to consult with an attorney.

https://docs.legis.wisconsin.gov/statutes/statutes/842

 

[jenn19]

Thanks Just Blue, that's exactly what I was looking for.
I knew there was a way I should be going

 

[doucar]

Just realize that if you go through with a partition suit and have a court sale, you will get no where near fair market value.

 

[Just Blue]

Just realize that if you go through with a partition suit and have a court sale, you will get no where near fair market value.

An important point I left out...Thank you doucar for pointing that out.

 

[LdiJ]

Just realize that if you go through with a partition suit and have a court sale, you will get no where near fair market value.

I got the impression that the OP wanted to buy out the other party. A partition suit won't get the OP that result either. All the partition suit will do is force the sale of the property at auction.

 

[quincy]

I got the impression that the OP wanted to buy out the other party. A partition suit won't get the OP that result either. All the partition suit will do is force the sale of the property at auction.

If the goal is to sever the relationship and the joint tenant does not want to sell the property, the only way to force a sale of the property is through a partition suit.

If the property is a duplex or otherwise easily divisible, it can be possible to partition by dividing up the property and each owner gets their own piece (called: partition in kind). Otherwise, the partition will be by sale of the property and the proceeds of the sale are split. The mortgage on the property will need to be paid off.

It is not ideal if jenn19 really wants to keep the house but, unless the other owner can be convinced to sell (perhaps by offering to purchase at an above-market-value price), then jenn19’s options are limited.

 

[adjusterjack]

Thanks Just Blue, that's exactly what I was looking for.
I knew there was a way I should be going

In addition to the house potentially selling at auction to investors for considerably less than market value, you will also have to incur attorney fees. You are likely to pay $300 to $400 per hour and a large retainer of many thousands of dollars. You'll be amazed at how fast attorneys run through that money.

On the upside, once your co-owner is served with the lawsuit and he talks to an attorney about the process and the cost, it might just convince him to sell out to you.

 

[PayrollHRGuy]

Let's not forget the OP can be at that sale and bid for the property as well. But I agree a Partition suit is a great way to make sure nobody but the lawyers involved are happy when it is all said and done.

 

[quincy]

This is a good lesson in why you should not buy a house with someone without a solid contract in place detailing exactly what is to happen if one wants to sell and one doesn’t.

It is often far easier to create partnerships than it is to get out of them.

 

[zddoodah]

A friend and I bought a house together five years ago as joint tenants. We share a mortgage and I want to sever the relationship.

What does "sever the relationship" mean? I'm assuming it means that you no longer want to own the house with him. Correct?

Also, would I be correct to assume that, when you bought the property, you and your friend did not enter into a written agreement that governs the terms of your joint ownership, including what happens if one of you wants to terminate the arrangement?

I called a local lawyer and need some help to prepare.

You want anonymous strangers on the internet to help you prepare for what? A meeting with a lawyer? Why would you want that, and why would you think you need to prepare for that?

Besides getting an appraisal, what else should I be doing?

There's nothing you need to do in advance of meeting with a lawyer.

If your joint owner doesn't (owners don't?) want to sell his/her interest to you, then you have only one option: a partition lawsuit. Such a suit will cost you both a bunch of money and may result in a court-ordered sale of the property, which will likely result in a sale for less than fair market value.

I got the impression that the OP wanted to buy out the other party. A partition suit won't get the OP that result either. All the partition suit will do is force the sale of the property at auction.

A partition suit does not have to result in a sale at auction. The partition judgment could require that the parties cooperate in the sale of the property (with a sale at auction being a fall back if the parties can't play nicely).

 

[jenn19]

Hi Everybody, thank you for your banter! You have answered my question and then some.

Lawyers are expensive. You bet I'm going to do my homework to spoon feed them the relevant facts.

 

[jenn19]

We actually do have a Roommate Agreement that addresses selling (after 5 years) and possibly dividing the property into two separate spaces. Not sure if it would hold weight in court, but ya never know. This is not my first rodeo with this partner and probably not my last. Just needed to know the term to proceed. I wish no ill will on them - just want to cut bait. Thanks again

 

[Just Blue]

Hi Everybody, thank you for your banter! You have answered my question and then some.

Lawyers are expensive. You bet I'm going to do my homework to spoon feed them the relevant facts.

You are so out of line. @zddoodah advice was sound and accurate. You are an idiot if you disregard it.

 

[jenn19]

You think telling someone NOT to prepare for a meeting with a lawyer is sound advice?