Expert: Dick Dennis - 9/5/2010

Question
I co-own a residence in southern CA. and I am listed as a Tenant In Common on the deed. I currently wish to leave and be bought out of the residence. My partner and I agree on the approx selling value of the house. However, he wants to factor in potential realtor selling fees to deduct from my buy-out amount. He will deduct half of the usual 6% realtor selling fees from my amount owed me. He stated that he needs to do this in case he had to sell the place after the buy-out. Is this a routine thing to factor-in when calculating a buy-out from a residence?  

Answer
Not unless the house was indeed being sold to a third party, Grant. Otherwise, whatever makes the airplane fly. An offer is an offer and may deserve a counter offer. After all, you are the one who wants to separate the interests and therefore you are starting from a negative position.

Or, you can put an amount equal to the whole Realtor commission into an escrow office account, an attorney's trust account or some other neutral location. If your partner has not sold the property within a set amount of time, say, 3 years, then you get back your share of that commission. If the property is sold, then not. Of course, there may be fees involved in holding that money in a neutral account. I do wish you well.

Dick Dennis
CA Real Estate Broker
Lic. #00349415
dixiedee13@aol.com