Q: Who is right, legally, Bob or Betty (unmarried roommates) regarding sharing proceeds from Alabama property sale?
Bob owns a 7 acre parcel. Bob and Betty jointly own an adjacent 14 acre parcel. Bob and Betty bought a mobile home and placed it on the parcel Bob owns. They jointly signed a mortgage for $70,000, pledging the two parcels as security. The mobile home became a part of the 7 acre property as an improvement. 13 years later, Bob and Betty no longer want to own the mobile home and parcels and to go their separate ways. The mortgage payoff is about $55,000. Both Bob and Betty want to sell the parcels and payoff the mortgage, and not let it default, then face fines, penalties and fees not in their control. Bob says "we'll sell, payoff the mortgage and share what's left at 2/3 for Bob and 1/3 for Betty based on parcel ownership & original security pledge". Betty says "no fair. Mobile home is on Bob's parcel and part of that parcel since day one. Mortgage payoff should be 100% from Bob's ownership of parcels and none out of Betty's ownership". Note trailer value may be < $55,000; land $5k/acre.
A:
There is no right or wrong answer. It depends on what the parties agree to.
But, if they sell the 7 acre parcel with the mobile home, the presumably will get more because of the value the mobile home adds. Unless they’ve not kept the mobile home in good repair, one would assume the added value would more than cover the balance owed on the mobile home
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