House purchased in full with brother in SF

[lynnereal]

I purchased a house in full with my brother. We got a short sale for $325.000
He put in $240,000 and I put in $100,000. We are both on the deed.
His idea that he wants me to sign off on is:
He wants ALL of his money back within 2 years..which means I must get a loan.
I have been making monthly payments to him..however he is insisting that it all be interest and no principal.
He wants to still be on the deed and when the time comes to sell the house(roughly 5 years)
He wants the appreciated profit to be split..
If I do not agree to his terms he is threatening to sell the house.
My understanding is that if he gets all of his money back, he will not still be an owner of the house.
I did ask him if I could make monthly payments of 1/2 interest and 1/2 principal..and he refused.
He is saying that he acted as my bank to make the purchase feasible. He wants his ROI and he is even charging me 6%.
The problem is I cannot get a loan from the bank because I have not been at my job long enough, so they will notlend the money.

PLEASE....PLEASE..Can someone answer these questions.

 

[Zigner]

How is this address in your written contract with your brother?

Maybe it's best to sell the house and get out of this quasi-partnership you seem to have created.

 

[justalayman]

just call me psychic J

I see a couple lawyers making more money off this house than the OP and his brother.

the time for discussing everything you have asked about is before you buy the house. Then, you memorialize it in writing and take appropriate measures to signify each of you have approved of and ratified the agreement.

My understanding is that if he gets all of his money back, he will not still be an owner of the house.

well, that would be a misunderstanding. He is no longer an owner once he transfers his interest in the property to another party. If it coincides with the payment of his investment, so be it but one does not necessarily involve the other. Given what you have said about your brother, he has no intent of divesting himself of his title interest until it is sold.


You are in a real pickle and no easy way out.


just a note; while he can sell his share of the interest in the property, he cannot sell yours. Unless he can find somebody to become a co-owner with you, he isn't going to sell just his share.


he can sue to partition the property though. If that happens, you will both end up selling your shares because the court will auction the house off. No guarantee anybody gets all their money back if that happens.

 

[Ohiogal]

I purchased a house in full with my brother. We got a short sale for $325.000
He put in $240,000 and I put in $100,000. We are both on the deed.
His idea that he wants me to sign off on is:
He wants ALL of his money back within 2 years..which means I must get a loan.
I have been making monthly payments to him..however he is insisting that it all be interest and no principal.
He wants to still be on the deed and when the time comes to sell the house(roughly 5 years)
He wants the appreciated profit to be split..
If I do not agree to his terms he is threatening to sell the house.
My understanding is that if he gets all of his money back, he will not still be an owner of the house.
I did ask him if I could make monthly payments of 1/2 interest and 1/2 principal..and he refused.
He is saying that he acted as my bank to make the purchase feasible. He wants his ROI and he is even charging me 6%.
The problem is I cannot get a loan from the bank because I have not been at my job long enough, so they will notlend the money.

PLEASE....PLEASE..Can someone answer these questions.

So was all this put in writing PRIOR to the purchase of the house? He can't sell the house if you are on the deed. And it is not a loan unless it was in writing PRIOR to the purchase of the house. Statute of frauds.

 

[robinmathews]

Real Estate Firm

Its really stressful situation for you.. I think you have to consult with real estate firm who will give best suggestions ans also gives better ideas to short-out this matter.

 

[Ohiogal]

Its really stressful situation for you.. I think you have to consult with real estate firm who will give best suggestions ans also gives better ideas to short-out this matter.

You have no clue, do you?

 

[LdiJ]

I purchased a house in full with my brother. We got a short sale for $325.000
He put in $240,000 and I put in $100,000. We are both on the deed.
His idea that he wants me to sign off on is:
He wants ALL of his money back within 2 years..which means I must get a loan.
I have been making monthly payments to him..however he is insisting that it all be interest and no principal.
He wants to still be on the deed and when the time comes to sell the house(roughly 5 years)
He wants the appreciated profit to be split..
If I do not agree to his terms he is threatening to sell the house.
My understanding is that if he gets all of his money back, he will not still be an owner of the house.
I did ask him if I could make monthly payments of 1/2 interest and 1/2 principal..and he refused.
He is saying that he acted as my bank to make the purchase feasible. He wants his ROI and he is even charging me 6%.
The problem is I cannot get a loan from the bank because I have not been at my job long enough, so they will notlend the money.

PLEASE....PLEASE..Can someone answer these questions.

His terms are pretty unreasonable. I would never agree to such terms.

He cannot sell the house without your agreement.

6 percent interest is a bit high, but its not unreasonable.

If the payments you are making are higher than the interest, then he should be applying some of it to principal. If the payment amounts cover only the interest, then you are only paying interest.

If you pay him back in full, with 6% interest then he should deed the house to you as sole owner. Keeping him on the deed might be problematic for getting a mortgage. If he is paid back in full, with 6% interest, then its unreasonable of him to also want part of the appreciation when you sell.

Its not unreasonable of him to want you to get a mortgage and pay him back in full within 2 years.

The biggest problem that the two of you have is that all of these kinds of things should have been decided, and agreed upon in writing, BEFORE you bought the house. Right now neither of you has any more power than the other in this situation. It doesn't matter that your brother invested more money than you did. You are equal owners and neither of you can force anything upon the other.

If you end up having to fight this out in court, both of you will lose, big time. Partition suits are very expensive and the house ends up getting auctioned off, quite often for considerably less than fair market value.

 

[STEPHAN]

There must have been some kind of agreement when you bought this. Looks like it was not put in writing and it might be totally unrealistic.

However, obviously your brother has a different idea what was agreed upon than you.

Talk to him and find out, what he thinks what the agreement is. Do not argue or tell him how wrong he is. Just ask him and write it down.

Than write us, what you think the agreement is.


BTW: That is one reason why people put agreements in writing. No only to have evidence, but to clarify on both ends what the agreement really is.

 

[Ohiogal]

There must have been some kind of agreement when you bought this. Looks like it was not put in writing and it might be totally unrealistic.

However, obviously you brother has a different idea what was agreed upon than you.

Talk to him and find out, what he thinks what the agreement is. Do not argue or tell him how wrong he is. Just ask him and write it down.

Than write us, what you think the agreement is.


BTW: That is one reason why people put agreement in writing. No only to have evidence, but to clarify on both ends what the agreement really is.

And also to comply with the law and make it enforceable.