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Legal Ease
Legal Ease, Lawyer
Category: Canada Family Law
Satisfied Customers: 96457
Experience:  I am a practicing lawyer and have also been an online professional for 5 years.
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My parents sold their property and redirect their profit of

Customer Question

Hi,
My parents sold their property and redirect their profit of $42K to me for down payment in a house that me and my ex bought, say house "B", for $270K. We then sold the house "B" and bought house "C" with the profit from the house "B". We are divorced and selling the house "C". Are my parents, who have been living with us from "B" to "C", entitled to the profit from the sale of house "C"? This is in Ontario, Canada.
Thank you
Submitted: 1 year ago.
Category: Canada Family Law
Customer: replied 1 year ago.
If my parents are entitled to the profit from house "C", how much? In dollar or percentage of the value of house "C"?
Thank you
Expert:  MaryMeadenEsq replied 1 year ago.

Hello there --

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Under the circumstances that you describe in your explanation above, unless there are any other written documents setting forth the terms and conditions of any proposed sale or proceeds of the proposed sale which include your parents in the mix

Expert:  MaryMeadenEsq replied 1 year ago.

Then under these circumstances,

Expert:  MaryMeadenEsq replied 1 year ago.

Your parents were agreeing to turn the property over to you and permit you to run it as a bed/breakfast facility and without your parents keeping copies of everything. In that case,there could be rumours regarding how officers lied and carried on at the property, but unless it can be proven, your best best is to have your parents sign over clean deeds to you for the future ownership and management of the property....

Customer: replied 1 year ago.
Hi,
Do you practice in Ontario or in US?I don't know how the bed/breakfast come into the picture. We are operating a business. My parents sold their home and loan me the money from the sale of their home. The house "B" and "C" were me and wife matrimonial home and house "C" is on sale now.Can you please clarify?
Thanks
Customer: replied 1 year ago.
Correction. I meant we are NOT operating a business such as bed and breakfast.
Customer: replied 1 year ago.
I'm still waiting for your reply as your 1st answer doesn't make sense. We didn't and aren't operating a bed and breakfast business. my parents sold their home and loan me the money to buy house "B" which was owned by myself and then wife. We sold house "B" and bought house "C". We are divorced and selling house "C" now. My parents have been living with us.Please confirm if my parents entitle to the profit of house "c" and by how much if the house is valued at $800K.
Thanks
Expert:  MaryMeadenEsq replied 1 year ago.

Hello again and I apologize for the delay -- i was in the hospital having surgery yesterday afternoon and just got home right now.

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Because this property is in Ontario Canada, you should have been forwarded to our Canadian website for reply. I am going to opt out of the question and alert the moderators to put this up on the Canadian attorney list. MARY

Expert:  Legal Ease replied 1 year ago.

I am a lawyer in Canada. Oddly the US lawyer and I have almost the same user name on this site.

But I am in Ontario and can answer your question. I have no idea why the bread and breakfast was mentioned so let's just start over.

What I need to know is if there was any agreement between you and your parents as to what they would be entitled to when they gave you that money.

And after that when you sold the house and bought the next one was there any agreement between you and your parents then?

Customer: replied 1 year ago.
Thanks. Now we are getting somewhere.Yes I recalled there was agreement with my parents that their shares plus inflation+1% will be returned anytime they wish to, including possible marriage dissolution, unfortunately it materialized.
If my parents are entitled, how much will they get back? $42k or by % of the profit from house "c"?Thx.
Expert:  Legal Ease replied 1 year ago.

They would get back their share plus inflation plus 1% as that was the agreement.

There is no reason why they would share in the increase in the value of the property as that is not what was agreed upon.

Does that make sense?

Customer: replied 1 year ago.
Thanks for the reply. Their initial investment formed the major portion of the down payment for the 1st (house "B") house me and ex bought. Then 100% of profit from "B" was used as down payment for "C". If "C" is worth $800K, they will only get $42K+inflation +%?Where do you practice and what's your hourly rate ? How certain/confident are you able help my parents get their share back? Any assumptions?
Expert:  Legal Ease replied 1 year ago.

I can't act for you. But I can suggest ways on finding a lawyer.

I am a family lawyer and I can only assume that your spouse is saying that the money was a gift right?

Your parents will testify that this was a loan and explain about the agreement and it is likely but not absolute that the court will believe them.

Customer: replied 1 year ago.
Does the fact that my parents have been living me put them in a disadvantage position to collect their shares back?What can be done to ensure the court Absolutely believe?
Expert:  Legal Ease replied 1 year ago.

This puts them in an advantageous position I would think. You let them live for free because they own part of the home.

You can think of others who can be witnesses such as a lawyer, an accountant, another family member or friend.

If there is any documentation you can show that.

Otherwise it is your word and theirs against your spouse.

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