Thanks so much for your reply. Title to real estate
is based on the deed. So, if you are the only one on the deed, you own the property. And, unless you have a written signed agreement regarding them gaining ownership, they have no legal right to an interest because the statute of frauds requires agreements regarding real estate to be in writing. So, you can terminate this relationship which would basically legally be looked as a landlord tenant arrangement. You can terminate this arrangement by giving them 30 days written notice and paying them back the money they've paid toward a down payment. You could make an argument that you would be entitled to keep any portion of the mortgage payments they've made attributable to interest plus the insurance as basically rent for the use of the property. But, if you want to pay them back everything they've paid to prevent further argument, they would be much less likely to file suit. You would not owe them any increase in the value of the property because they have no ownership.
One other thing, if you give them the 30 day notice and they don't leave voluntarily, unfortunately, you do want to go through the legal process to avoid being accused of an illegal eviction
. With no lease, they would be deemed to be a month to month
tenant. If they don't not leave voluntarily on or before the 30 days, under Michigan law, you will then need to give a 7-Day Notice to Quit...meaning they must vacate the premises within that period or face formal eviction. Then, if they still have not left, you will have to file a petition for an eviction order. Once that is granted...you can have the sheriff evict. Unfortunately, you are not allowed to move their stuff out, change the locks, or take any other means of "self-help" eviction prior to obtaining the eviction order. In the interim, if they pose any threat to your person or property, you can get a restraining order to get them out of the house immediately while the eviction process runs its course.
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