Q: Ex refuses to sell house; can I be bought out for a dollar?
My ex and I co-own a house with a mortgage. I want to sell, but he wants to make repairs first. We received an insurance check for damages, which is held by the mortgage company. I haven’t contributed to mortgage payments since moving out nearly two years ago. He can't afford to refinance and hopes to use leftover insurance funds for personal expenses. Can he buy me out for a nominal amount, like a dollar, since I want to sever ties with the house and him without financial gain?
A: If he will accept your portion of the property, you can deed it to him. However, that does not end your financial obligation under the mortgage. If he does not pay it, your credit will be affected. If you want to force the sale of the property, you can through a partition lawsuit. In a partition lawsuit, the court will order the sale of the property if the property cannot be divided evenly. After the sale, the parties split the proceeds from the sale. Each party's share of the proceeds may be subject to offset depending on who has paid the mortgage, insurance, taxes, and maintenance. If one party has had exclusive possession of the property, that may also affect the payout to each party. Schedule a free consultation to protect your interest in the property and determine the best solution for your particular needs.
Terrence H Thorgaard and Charles M. Baron agree with this answer
A: If I understand you correctly, you wish to waive whatever rights you have regarding the property, both possessory and financial, as well as whatever rights you have to insurance proceeds, even though you may be giving up a very substantial amount of money. Yes, you can waive your rights and sell your legal interest in the property for a nominal amount instead of the amount you are legally entitled to. However, your ex might then be subject to a gift tax; a CPA should be consulted about that.
A: To add to my last answer, I agree with Mr. Clifton's warning about your mortgage loan liability if your ex doesn't pay all remaining monthly payments or pay it off.
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