Building a house with my Girlfriend and now she wants out. What is she entitled to?

[Litigator22]

She would be a fool to quitclaim anything prior to getting paid if she is on the deed. She can also file a partition suit if on the deed and force the sale of the property.

And conversely he would be a damn fool to pay her one thin dime without the assurance that he has succeeded to, or will succeed to all of her right, title and interest in the lot!

Also, if you will read with more care you might note that your self-evident commentary is anticipated in my response; to-wit:

". . . or she is contractually committed to quitclaim her interest . . ."

 

[xylene]

This house isn't built. I'm still unsure why anyone is assuming any equity at all.

Does she share in the cost of demolishing whatever is built of this partially complete thing she abandoned?

 

[adjusterjack]

This house isn't built. I'm still unsure why anyone is assuming any equity at all.

The land has value. Materials have been bought. And the structure itself has value that increases even during construction.

Does she share in the cost of demolishing whatever is built of this partially complete thing she abandoned?

smh.

 

[xylene]

The land has value. Materials have been bought. And the structure itself has value that increases even during construction.

The land sure.

Buidling materials? so what. That's sunk cost even in a finished building.

An unfinished structure where construction has stalled or stopped may need to be demolished or substantially revised at great expense, far beyond any 'value' it has.

I've seen it plenty of times.

 

[HighwayMan]

It's interesting that the OP doesn't mention anything about the relationship being terminated, only that the girlfriend has changed her mind about the house and paying the expenses associated with building it.

 

[adjusterjack]

It's interesting that the OP doesn't mention anything about the relationship being terminated, only that the girlfriend has changed her mind about the house and paying the expenses associated with building it.

I thought of that but was too lazy to bring it up.

 

[LdiJ]

The land sure.

Buidling materials? so what. That's sunk cost even in a finished building.

An unfinished structure where construction has stalled or stopped may need to be demolished or substantially revised at great expense, far beyond any 'value' it has.

I've seen it plenty of times.

Perhaps commercially. However, when its residential the partially finished structure does have value. It can be purchased, finished and sold. Unless the land itself is so valuable that it would be worth demolishing the existing structure to build something substantially different no one is going to do that. In this scenario I am quite sure that the OP's parents will strongly prefer that the house gets finished and mortgaged.

 

[xylene]

Y'all have a really ambitious valuation of a 'partially finished' owner hand built house that isn't near finished 2 years later...

 

[Abigail123]

Thank you all for the feedback and information. Just to clarify, we both signed the deed of trust to hold the lot and make the payments. I agreed to pay her back all the money she has put into the house since I believe that is fair if she is pulling out. However I do believe its not fair of her to pull out in the first place since she did sign the deed of trust, but that was our fault for not having written agreements that cover all possible situations. The one written agreement we do have is very vague and states she will receive her money back plus $8,000 per year of living together upon separation- however we have not begun to live together since the house isn't finished.

We have a friend of the family who is a retired lawyer and I spoke with him very briefly a few months back. Regarding the lot, he said since we don't own it she isn't entitled to receive any interest payments back, but she is entitled to get back any down payment she made.

If she's requesting to get interest on her money on top of the interest payments made wouldn't it make more sense for my parents to request interest on their money they have loaned us since they have nothing to do with the house other than the loan, then split that amount between the two of us.. In that case whatever % interest rate she would want it would technically get cancelled out with the interest from the loaned money since it was double the amount my girl friend contributed.

We've been discussing everything and my parents want to make things as fair as possible that's why I wanted to seek some advice and hope that it doesn't come down to having a legal battle.

Thanks again, appreciate all the feedback

 

[xylene]

Stop worrying about fairness.