Q: My sister and I have Joint Tenancy and co-own a townhouse; How do we calculate her investment?
I have been paying all expenses for the property for the past five years and we secured a mortgage ten years ago. My sister now wants me to purchase her share of the property. How can I determine how to work this out since she has a “fixed” price in mind that does not match your investment?
A: The answer is a bit of accounting followed by a negotiation. You should add up your bills paid with receipts, subtract the value of any disparity in use, like rental value, factor in income earned, and then negotiate. A mediator could be quite useful in this setting, and each side having a lawyer can get you to professionally reasonable positions that lead to a successful mediation.
Thomas C. Valkenet agrees with this answer
A: Where expenses of ownership are not equally shared, there is a broad range of negotiation possible. First, you must make the calculations concrete. Gather the facts and documents. Your co-owner can review the data with a financial or legal advisor. Absent a negotiated agreement on the proceeds of sale, either of you have the option to sue for "partition," where the court orders a separation of ownership and a forced sale to a third-party. But that requires that you relinquish much control over your transaction. Above all, be patient, and you may keep the situation from becoming a court case, where the pandemic has severely limited the efficacy of our court system. This would retard your outcome.
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