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Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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Three brothers inherited a home, two will buy out one

Customer Question

Three brothers inherited a home, two will buy out one brother. Is it necessary to established an escrow with today's valve and then have each brother have a percentage of money kept in an escrow in the event that the home is sold in the future? Is the brother that is being bought out requirred to do this? if so does the escrow money deposited remain indefinitely?
Submitted: 18 days ago.
Category: Real Estate Law
Expert:  Richard replied 18 days ago.

Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 18 days ago.

Hi Mary Ann. I'm a little unclear on the proposed transaction? If the two brothers are buying the other brother out, why are they simply not paying the selling brother for his interest now? Thanks.

Customer: replied 18 days ago.
They are but they want money held aside for escrow in case they choose to sell the house in the future. The realtor is suggesting we place 21,000 to together.l, our portion is 7,000 for an undisclosed amount of time.
Expert:  Richard replied 18 days ago.

I'm still confused by the realtor's suggestion. If the two brother's are buying the one brother's interest, the two brothers should simply pay the selling brother now and have the selling brother sign a deed transferring his interest to them. There is no need for an escrow because once the selling brother sells, he has no further interest in the property and when and if the other two brothers sell the property has no relevance to the selling brothers.

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