Expert: liznarr - 2/28/2008

Question
Hi.

My father has owned a house with his partner for 10 years.  He has made every payment on the house and has proof of payment via check images from his bank.  They have recently split and agreed to sell the house but his partner wants 50% of the net profit.

My father has contacted a real estate lawyer who claims my father has a good case to receive up to 100% of the profit but I've been doing some checking and I'm not sure if this seems accurate.

If this does go to court (my father has generously offered 25% of the profit in good faith to avoid court but the offer was declined) - does he indeed stand a chance of "winning" this?   I mean, it is as simple as showing 120 check images from his own (not joint) bank account proving he alone made all the mortage payments?

Thank you in advance for your assistance.
-Mike

Answer
Hi Mike,

Your question is a legal one, and I am not qualified to give legal advice, but I will offer my opinions below.

If your father has made ALL 120 payments during the joint ownership and has check images as proof, that is an excellent start; and I would listen to his real estate lawyer.

Even “IF” a court were to determine your Father’s partner is entitled to a portion of the NET profit, it would seem to me that your Father’s 120 payments should be reimbursed to him as HIS expenses and deducted from the sales price in arriving at the net profit.

If the property is rental property and your Father also handled all the “management” of the rentals and arranged and paid for repairs, etc., these charges, too (I would think), would also be deducted from the sales price and reimbursed to your Father before determining the net profit.

Good luck to you, and write again if you have additional questions.

Regards,
Elizabeth