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
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.
Terrence H Thorgaard agrees with this answer
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.