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My husband's sister wants to buy him out of their mother's…

Customer Question
Hello, my husband's sister...

Hello, my husband's sister wants to buy him out of their mother's house. There was an outstanding loan balance on the home of $65,000 which would come off the top to be paid out first which he is in agreement. Well, now he has learned that his sister has done some upgrades to the home that he knew nothing about which has bumped the payoff from $65,000 to $100,000. Is it right in that he does not have to pay for those upgrades? She is doing stuff to the house and has not bought him out yet and wants him to pay for these upgrades which makes his half for her to pay him a smaller amount. Please advise.

Lawyer's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

Landover, Maryland. Also, the mother is still living, but she has told them to work it out amongst them and wants nothing to do with it. She doesn't want to do a Will because she feels his sister will be fair which we know she won't because her daughter is currently living in the house and they are doing these updates and expects him to pay which is not fair right?

Lawyer's Assistant: Has anything been filed or reported?

No, the sister wants to pay him from your account if they can agree on a figure. The house has been appraised for $230,000. She has said that once the outstanding loan balance is paid off the top then they will divide it in half. He doesn't want that extra $35,00 added to his portion.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I think that it.

Submitted: 6 months ago.Category: Real Estate Law
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Answered in 5 minutes by:
3/7/2018
Real Estate Lawyer: Barrister, Lawyer replied 6 months ago
Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 43,625
Experience: 17 years real estate, Realtor. Landlord 26 years
Verified

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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Where is mother in all this?

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Whose name is ***** ***** currently in?

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Are you saying that the sister is doing all the upgrades but wants to buy out brother and have him pay for half the upgrades?

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thanks

Barrister

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Customer reply replied 6 months ago
1. She is living currently with her daughter and has stated that she wants the house to be divided equally among his sister and my husband. She has only the two. His sister's daughter has been living in the house since the mother moved in with my husbands sister. She is a very passive women and has said she wants them to have the house and that she feels the sister will do whats right. My husbands disagrees as you can see she has already up the balance of the loan by $35,000 making aprovements such as replacing all windows, redid the basement and and added a deck. to the house.2. The mother's name is ***** ***** the house, her husband is deceased.3. His Sister has money of her own and has agreed to pay him $60,000 but this was before he learned she did these upgrades and he doesn't want that to be included in his payoff. We now figure his pay off should be $75,000, without including the extra $35,000. The original payoff was $65,000 and she has added $35,000 to it making the pay off $100,000. She got her mother who is 87 years old by the way, to refinance the loan so she could get these upgrades done.
Customer reply replied 6 months ago
Can you give me your number and I will have my husband call you.
Real Estate Lawyer: Barrister, Lawyer replied 6 months ago

The phone call offers are auto generated by the website, not me personally. I do not participate in the phone call program for the site and limit my interaction with customers only to the website because I like to have time to think about a customer’s question and research it so I can provide the best answer possible in writing.

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However, 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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I am more than happy to continue on the website though. Just a couple minutes while I type a response..

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Real Estate Lawyer: Barrister, Lawyer replied 6 months ago

Ok, I would opine that it would be unfair for brother to have to contribute to improvements that only benefit sister/granddaughter. Sister is essentially asking brother to gift her half the cost of the improvements that only benefit her.

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But the problem is that mother is the one who took out the loans, so they will have to be paid off before brother could receive any proceeds if the property is sold.

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That means that whether it is fair or not, it wouldn't matter whether mother took out the loans to improve the house for herself or for daughter or for the granddaughter , they still have to be paid off..

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With that said, I would opine that brother could hold out and refuse to pay for all of the upgrades from his share and demand that the house was actually sold out of the estate when mother passes if sister won't basically up the price she is willing to pay him to buy out his half... which to me is only fair..

.

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thanks

Barrister

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Real Estate Lawyer: Barrister, Lawyer replied 6 months ago

Hello again,

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I just wanted to touch base with you and check in.

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Did you have any further questions I can help with?

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Thanks much

Barrister

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