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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 38228
Experience:  17 years real estate, Realtor. Landlord 26 years
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My mother deeded her condo located in Queens NY to herself

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My mother deeded her condo located in Queens NY to herself to me and my husband as joint tenants with the right of survivorship ; 8 years later she deeded, without our knowledge, her portion to my brother who lives outside the US (not US citizen and whose visa has been revoked) My brother holds ownership as tenant in common. My husband and I have an existing mortgage on the property that is paid in timely manner, property taxes association fees are all current, non of us is living there. What are our the options and possible costs to sell this property? Property was purchased by our mom for approx. 30,000 now is worth possibly over 400,000 our outstanding mortgage is 152,000 How much taxes has to be paid?
JA: You just pay a $5 deposit now and the rest only when you get a reply from the Real Estate Lawyer. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for any reason. Because laws vary from place to place, can you tell me what state the property is in?
Customer: Property is in Qeens New York. What is "the rest"? How much do I have to pay Real Estate Lawyer to answer my question?
JA: It can cost anywhere from $10 to $100, depending on the type of issue and how much of the Real Estate Lawyer's time your question is expected to take (how complex and lengthy an answer you require).
Customer: how do I pay for downpayment?
JA: Has any paperwork been filed?
Customer: No
JA: Anything else you want the lawyer to know before I connect you?
Customer: No.

Hello and welcome! My name is ***** ***** I am a licensed attorney and will try my best to help with your situation. There may be a slight delay in my responses as I type out an answer or reply.

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You may also be offered a phone call, but those don’t come from me and are offered by JustAnswer. If you have requested a phone call with an attorney, your request will post to other experts that do offer this service. When another attorney accepts your request you will get additional instructions.

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Will brother agree to sell?

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thanks

Barrister

Customer: replied 27 days ago.
That is my problem, my brother does not want to sell.

Ok, then you do have a problem.... it can be overcome, but it is expensive because you have to hire an attorney for several thousand dollars to file a "partition lawsuit" against brother to have a judge order a sale of the property at public auction to the highest bidder. If he can't be served with a summons for the suit, then the court can allow "service by publication" where an ad it placed in the local newspaper and the sale can proceed.

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If you were joint tenants, then you, mother and wife each owned 1/3 so you and wife now own 2/3 and brother owns 1/3 so any sales proceeds would be divided up that way after any mortgage was paid off. You would then owe capital gains taxes on any gain over what mother paid for the property long ago at whatever your capital gains tax rate is..

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thanks

Barrister

Customer: replied 27 days ago.
How much lawsuit may cost us? We know that auction buyers always take advantage of such sales. How the minimum sale price is established by courts? There is a pretty big difference between our loan and market value of the property. Does such sale hurt our credit history? We have no problem to pay our mortgage as long as we have to. How involved in this process might be our lender?

Probably $5-8,000 as a ballpark guess.. You can shop around for a real estate attorney as the process is identical for every attorney. So an inexpensive one will do the same thing as a very expensive one..

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How the minimum sale price is established by courts?

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There is none. But you are free to bid on the property to protect your interest and can even buy it if you wanted to be the high bidder and felt it wasn't selling for enough.

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Does such sale hurt our credit history?

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No, not at all.

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How involved in this process might be our lender?

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They are not involved at all.

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thanks

Barrister

Customer: replied 27 days ago.
Please tell me if I am correct; if for example property sells for 300,000 how the proceeds are divided? From my understanding first 150,000 (our loan) has to be paid off to the lender; from the remaining 150,000 my brother will get his 1/3 (100,000 minus taxes) and we will be left with 50,000 (2/3 = 200,000 minus 150,000) and have to pay capital gain taxes from 200,000
OR
150,000 loan paid to lender and then remaining 150,000 will be divided equally among the owners (50,000 each) which will leave us with 250,000 to pay capital gain taxes and my brother with 50,000 minus taxes?I used a round numbers for easier calculation; I know that we have to deduct original cost of the property and may deduct costs associated with the sale.
Can we split the cost of the attorney and court expenses among all three of us or only my husband and I are responsible for those?

The problem I see with this is that brother can argue that he isn't responsible for your mortgage since he presumably never got any of the money for it... And unless you put it into the property as capital improvements, then it wouldn't increase the cost basis of the house.

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And you and wife own 2/3 with brother owning 1/3... So if the property sells for $300K, if brother got none of the mortgage money, then I can see a judge ordering that he gets $100K, and you and wife get $200K minus the mortgage, giving you a total of $50K.

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Since the mortgage money wasn't used to purchase the house, then you would pay capital gains on $200K normally since this isn't your home and doesn't get a homestead capital gains tax exemption..

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Can we split the cost of the attorney and court expenses among all three of us or only my husband and I are responsible for those?

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Only if brother agrees to split those costs... otherwise you are solely responsible for them..

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It was my pleasure to work with you and help with your question. If you ever need me in the future, you can post a new question with "For Barrister" in the caption and the JustAnswer employees will get it to me.

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If you feel I have answered all your questions, I would very much appreciate a 5 star rating by clicking on the rating scale on your screen as that is the only way I receive credit for my work.

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Thanks much

Barrister

Customer: replied 27 days ago.
Thank you for all your help and honest answers.

You are very welcome. Happy to help any time.

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Have a great evening!

Barrister

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