Expert: Karyn Foley - 6/2/2011

Question
I am not sure if you may be able to answer this for me, or maybe you can provide some direction.  Unfortunately, I had to purchase a home split into two apartments with my brother.  This was 8 years ago.  He put down a 20k down payment and I got the Mortgage.  We are both on the title, but the Mortgage is solely in my name.  He is not living up to his part of the verbal agreement.  He had lived in the 2nd unit rent free for 5 yrs.  Paying no taxes, insurance or anything.  He then rented it out for over 2 years and kept all of the rental income.  Not declaring any to the IRS or domestic relations.  Now he wants to rent it out again and I want to open the house back up to a single house for myself and my family.  My question is --  Do we have the same rights both being on the Title to the house?  Is there any recommendations you can provide?

Answer
Dear James:  Although you are the sole person responsible for the loan, he seems o be responsible for your problems.  In real estate, all agreements should be in writing.  It is very difficult to prove and enforce verbal agreements in real estate.  He did leave himself open to some recourse from the IRS, however, by not reporting or paying any taxes due to he collecting rental income.  Perhaps a good real estate attorney could use that as leverage in your behalf.  Since I am not an attorney and thus I cannot give you legal advice in any way, shape, or form.  I can - and will - state very firmly that you should seek out help from a good real restate attorney who will act in only your behalf.  The attorney may ask you why you are continuing to make the mortgage payments when you can absolutely no benefits from making the payments.  Unless, of course, you are stating those payments in your tax returns.  This is a complex problem and you deserve sound direction from a legal specialist.  Each state has different laws, too.  Good luck and I hope you can get this resolved soon!  Why don't you go back to the All Experts site and seek out an initial response from the their list of legal people?  Tat would be a good first step.  KARYB FOLEY