QUESTION

How to buy brother out of our house?

Asked on Jan 06th, 2016 on Residential Real Estate - Utah
More details to this question:
My brother and I bought a house together 8 years ago and I now want to buy him out of the house since I got married. I have been the person living in the house and hehas never lived there. The house is maybe the same price we bought it for but we have made improvements and I've paid the mortgage for 8 years. If we sold the house, we would both lose money and we don't want to do that. I feel like he should not just get the money he put in since the house has not appreciated in 8 years but I want to be fair. Any tips and/or suggestions you can give me would be great.
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1 ANSWER

Family Law Attorney serving Salt Lake City, UT at David R. Hartwig, Esq.
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Based on your email, the two of you never put together any agreement when you bought the house addressing how any future buyout would occur, and the terms of that buyout, including potential increases in value, who paid for the improvements, and who paid the mortgage. That means you might be in a mess right now, depending on what the other brother thinks. Ultimately, the value of his portion of any downpayment or contribution has value, even at a very low interest rate, over the past 8 years. That is countered by your contributions in maintaining the house. Plus, with the market over the past year or so, there may be some increase in the value of the house generally. What you need to do is hire an attorney to assist you to fully spell out the terms of the sale to you, particularly as contracts between family members are often looked at by the courts as suspicious, and you'd have a very large burden of proof is your brother challenged the contract at a later date. So, avoid futher headaches and hire an attorney on this. I could assist you, if you desire.
Answered on Jan 07th, 2016 at 7:32 AM

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