partners on a duplex-What happens if ?

[soulexperience]

What is the name of your state (only U.S. law)? New Jersey
My wife and I are partners with sister and brother in law for 12 yrs on a duplex investment property.They have hit hard times and want to relocate to our investment property as their primary address living on one of the two floors.the question is- are we responsible for 50% of their expenses as it relates to the floor they are now occupying?We feel it is now no longer a 100% investment situation and do not want to be responsible for subsidizing their life or paying the price for their bad decisions.

 

[tranquility]

The law on the matter is that all owners have a right of possession. Co-owners are entitled to the profits from the property.

So, here, the law does NOT cover your question. Your agreement with your partners does. Because your agreement did not cover the situation, it seems you have a problem.

Do an if then tree of the issues which arise based on whatever action you decide to take. See what the best course is for your goals. The courts may get involved to help you if you cannot find a resolution, but their solution in a matter like this would be to force a sale on the courthouse steps and then allocate the proceeds accordingly. To get there will cost a lot of money.

 

[OHRoadwarrior]

I would continue with the agreement you have now, with them deducting fair value of their occupancy from their portion.

 

[tranquility]

I would continue with the agreement you have now, with them deducting fair value of their occupancy from their portion.

An owner has right to possession. He does not have a duty to pay for it again. If the other party does not agree with the deduction, there is no legal reason to demand it.

 

[OHRoadwarrior]

An owner has right to possession. He does not have a duty to pay for it again. If the other party does not agree with the deduction, there is no legal reason to demand it.

This does not mean it doesn't compromise the fair and equitable agreement previously had. If they occupy it and do not want to make it equitable, I would bring suit to sell the property.

 

[tranquility]

Yes, a partition lawsuit is the only way I see to get out of this without negotiations and agreement.

 

[LdiJ]

There are many ways that this could be handled fairly.

The most simple would be for them to be responsible for their unit, and for the OP to be responsible for the other, and to recieve all the rent from the other.

 

[tranquility]

There are many ways that this could be handled fairly.

The most simple would be for them to be responsible for their unit, and for the OP to be responsible for the other, and to recieve all the rent from the other.

Except, since that is different from the law on the matter, it would have to be negotiated. You cannot force the issue.