Tenants-in-common

[wayne1935]

What is the name of your state (only U.S. law)? New York

My wife and her sister own property as in the title. This year they agreed to exclusive use for July or August. The sister chose to rent to a third party for one of her exclusive weeks.

Is my wife entitled to a share of the rental income?

TIA,

WayneWhat is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

 

[tranquility]

Generally, all owners have a right to possession. Also, if any owner derives "profits" from the possession, he must share it with the other owners.

Here we have two main issues. One is, what is "profits"?

That's a hard question and court guidance is not complete. But, we don't have to worry about it because we have an underlying agreement. That agreement gives the right of possession to another for a time. It is reasonable that possession includes what ever profits means.

So, I'd say no. The sister does not have to turn over any money.

 

[LdiJ]

Generally, all owners have a right to possession. Also, if any owner derives "profits" from the possession, he must share it with the other owners.

Here we have two main issues. One is, what is "profits"?

That's a hard question and court guidance is not complete. But, we don't have to worry about it because we have an underlying agreement. That agreement gives the right of possession to another for a time. It is reasonable that possession includes what ever profits means.

So, I'd say no. The sister does not have to turn over any money.

I agree. They made an agreement that they each had exclusive use of the property for a certain amount of time, and either one of them could have rented out part of their "exclusive" time.

 

[HomeGuru]

I also agree unless other deals were made.

 

[wayne1935]

Not what I wanted to hear but since it isn't a lot of money I'm fine with the advise.

My wife and here sister have always split expenses (taxes, insurance, utilities,etc.) 50/50, including this year. Although there was only a single week rental this past summer it isn't worth quibbling over the expenses but my sister-in-law has talked about renting more often, would my wife be entitled to reimbursement for expenses?

Utilities would be easy - the sister pays during her time period but would they just pro-rate insurance and taxes?

If they are going to continue this agreement I would guess they need something more specific and legal than a simple signed piece of paper?

My concern about renting has always been about liability. Damage, missing items, etc. are a nuiscance but liability could kill use financally.

 

[tranquility]

My wife and here sister have always split expenses (taxes, insurance, utilities,etc.) 50/50, including this year. Although there was only a single week rental this past summer it isn't worth quibbling over the expenses but my sister-in-law has talked about renting more often, would my wife be entitled to reimbursement for expenses?

What does your contract giving possession rights to the parties say?

If they are going to continue this agreement I would guess they need something more specific and legal than a simple signed piece of paper?

I would have a good contract.

My concern about renting has always been about liability. Damage, missing items, etc. are a nuiscance but liability could kill use financally.

Certainly the sister's plan results in a greater risk of liability.

 

[ecmst12]

Add landlord's liability insurance to the list of expenses...

 

[anteater]

As Robert Frost once said, "Good contracts make good tenants in common."

 

[wayne1935]

It wasn't a contact as one thinks of a legal document. It was a written agreement but intended for planning purposes.

It was never my wife's intent to spell out every detail especially renting issues because my wife had made it clear to her sister, over many years, in numerous conversations and emails that she did not want the camp rented because of liability concerns.

For my wife's sister money is the issue. She wants to keep the camp (my wife wants to sell) but can't afford to buy my wife out and can barely afford her share of the expenses.

 

[wayne1935]

Add landlord's liability insurance to the list of expenses...

We have brought this issue up when my sister-in-law brings up renting. She has maintained that your homeowners policy covers short rentals (up to a couple of weeks). She also insists that the current liability insurance ($300,000)is sufficient on a million dollar property.I never pursued the issue with the insurance carrier since our concern is about our personal property. These liability suits can get very expensive and if the camp liability insurance is insufficient our home could in jeoprady since my wife is on the camp deed and our home deed.

 

[ecmst12]

Your wife needs to make sure proper insurance is in place, period. Her name is on the deed so she can very easily be sued if something were to happen.

Perhaps if the sisters go visit the insurance agent together, the agent can convince the sister of what could happen if they don't have proper coverage.

 

[susank005]

Yes but...

I dont think either of them should use the money for personal things, the money collected should go towards the morgage, taxes or for repairs on the property. So my answer is Yes but No.

 

[ecmst12]

And of course that answer has NOTHING to do with the law.