Q: Hi, I am 50/50 part owner of my house in Loxahatchee. I want to buy out the other party but I’m not sure how it works.
Would the buy out cost be the remainder of the mortgage or half of the current market value? Any information would be helpful. Thank you, sincerely
A:
The other owner is not legally required to accept a buyout. If a buyout were to occur, most parties want the purchaser to refinance the mortgage in their name only plus cash for ~1/2 the equity. A partition action may also be a option. See my website for more information regarding a partition lawsuit.
https://floridarealestatelawyer.org/florida-partition-action-attorney/
Terrence H Thorgaard agrees with this answer
A:
A buy out cost would be any amount your co owner agrees to. As far as the mortgage if you both signed the mortgage note you would probably have to refinance in your own name. Normally a co owner would want a buy out that would equal half the current equity meaning the current fair market value less the remaining balance on the mortgage. If the co owner doesn't want to buy out then the co owner may want alot more which would result in the need for you to initiate a partition action wherein among other things the court would determine the value of the interest of each of you in the property and may result in a court ordered sale.
Partition actions tend to be long and expensive and it is best to attempt to amicably negotiate a buyout agreement with your co tenant. It is suggested that you retain the services of a real estate attorney who does litigation to assist you in this process.
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