How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Roger Your Own Question
Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 30895
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
Type Your Real Estate Law Question Here...
Roger is online now
A new question is answered every 9 seconds

We were just discussing two Brothers who are tenants in common

This answer was rated:

We were just discussing two Brothers who are tenants in common on a small property... the Brothers had a definite oral agreement as to how all the expenses would be shared, in fact the Brothers recently went to CPA to determine where they stood in terms of expenses paid by Brother A relative to Brother B's initial (and only) "investment" into the property of $25K for the downpayment to purchase the property... Brother A has now put in $100K, how would any profits from the sale of the property be divided ?
Hi - thanks for looking me up again.

If there's an agreement that each owner would recover what he invested first and then the profits would be split equally, that's what would be done. Thus, the first $125,000 would be used to pay back the amounts invested and then any additional money would be split equally.
Customer: replied 3 years ago.

OK, and there is only an oral agreement & understanding between the Brothers, however, the Brothers recently paid a CPA to account for the expenses paid by the Brothers - specifically for the purpose of "equitable distribution" to buy-out Brother B's remaining interest in the property - especially since the initial downpayment of $25K made by Brother B, Brother A has already put-in nearly $100K into the property... (all this is in writing)... Though there is NOT a separate, written agreement as to how all the expenses would be accounted for, the oral agreement/ understanding & the written documents/ spreadsheets from the CPA should be sufficient - correct ?

The CPA spreadsheets and the actions of the brothers should be solid proof of their oral agreement. However, it would be up to a judge to determine this if the brothers can't agree.
Customer: replied 3 years ago.

It seems it would be prudent for Brother A to write Brother B stating, for the record, "as we always agreed, we'll split the expenses per the CPA, and handle the distribution of any remaining equity after we account for all the expenses paid by each of us to date..." (or something along those lines)... presumably, whether Brother B specifically agrees, or simply does not deny this truth, this could be helpful, or ?

Yes, that would certainly be a way to memorialize the oral agreement.
Roger and 11 other Real Estate Law Specialists are ready to help you

Related Real Estate Law Questions