Expert: Sue Bernstein - 10/1/2007

Question
When my mother-in-law bought the house 11 years ago, her niece gave her 20k to add to her down payment and for the first 5-6 years she was paid about 5k leaving her about 15k plus interest. Currently, my mother-in-law is going to have a surgery and wants her name remove in the title. She offered her niece 15k plus interest with the amount that she would have gotten if she invested it but she won’t accept the offer (She’s pretty hostile about it). My mother-in-law already talked to a lawyer and she still won't accept the offer. Where can i get additional information and educate myself about it. Do you know where I can find some references of the law or any suggestions you may have to solve this issue?


Answer
Dear Jun,

Before I can answer this question I need a few clarifications.  From what I understand your mother-in law's niece lent her $20,000 for the purchase of a home.
1. Was this loan recorded?  
2. Is it a trust deed against the property?  
3. Because of the loan did your mother-in-law add her niece to the title?

If she added the niece to title she cannot remove her without the niece's consent.  I am guessing from your question that an attorney reviewed all pertinent contracts.  Somehow, this has to be negotiated out.  Usually when someone lends money towards a property it is done in the form of a loan and doesn't necessitate adding the person to title.

I hope this helps and, if my understanding of your question is not correct, please e-mail me any clarifications.

Sue Bernstein