Expert: Karyn Foley - 7/7/2006

Question
I am buying my partner out of his half of our home. We have split up our belongings and agreed to share my refi expenses because he is getting his money out of it. I need to refi for this to happen, should he be required to pay all? If I had any obligation to take his half of the equity that would normally be taking by his 1/2 of the commission if we sold, I passed. We seemed to be ok until I brought up the leaking garage roof that required repair when we purchased 3 years ago. I asked that so the house is in good condition, we get an est for the roof and split that as well. I know the roof is getting worse and rainy season will be here soon. He totally flipped out, said he would force a sale, would not agree and would not sign my refi that is going through in two weeks. He has obtained an apartment and already change cable, electric..etc...Can he force sale since he committed to move out, took action? What is my recourse. Is it fair in what I am asking? If the house was sold, wouldn't we have to discount the roof repair off the price anyway? Do I need a laywer and do I have a case?

Answer
Dear Robert:  As agents, we are not allowed to "practice law without a license" so I will avoid making a judgment on if you have or have not a case.  I will say, however, that you have learned a valuable lesson in that anytime you have a partnership with real property, you should have a written, signed agreement going into the transaction when everyone is being unemotional and reasonable.  Where you are now, your partner knows you want to buy him out your partner is counting on you doing anything and everything to accomplish this.  Not fair. I believe he could force a sale through an action called partition, but this is what a lawyer can help you on. The very important thing is that he should sign your refi on his own behalf - if not, he may still be responsible for the mortgage payment without owning any interest in the property if it is sold.  I cannot understand why he would want this situation.  Whether or not you have to discount the roof repair is up to your new buyer.  Certainly a new roof would add some value to the price, of course. I suggest you try to remain calm and see if the two of you can work it out; if so, get anything you decide in writing.  If you continue to have these disagreements, perhaps the two of you can wisely invest in a lawyer to help you work out what would be fair and equitable and then follow it.  I am sorry you are going through such tough times now, but it will work itself out one way or another.  The nicer and calmer you are, the less excuse your partner has to get nasty. Splitting all costs seems fair, as you can only judge the value by what it is worth today.  If the property remains in your name only, it could go down or it could go up. No one guesses the future.  Another suggestion would be to consult your accountant so you can be well advised to act in your own best financial interest!Good luck to you, and let me know what happens.     Karyn Foley