Written agreement may be necessary
Dear Mr. Feichthaler,
Three years ago I purchased a foreclosure that needed significant rehabilitation. My sister is very poor with money for a variety of reasons, and I thought it would be good if she gave me half the purchase price as an investment. I hold the deed alone in my name. For the past three years, my sister has paid half of the expenses of the house. Recently, she asked to be added to the deed so she makes sure she gets half back. I have assured her I will give her half when we sell it, but she wants something more. I really don’t want her on the deed, as she travels a lot, and she is sometimes unreachable for months on end.
-Ms. Kovalchuk
Dear Ms. Kovalchuk,
There are countless situations where family members get together to purchase real estate or engage in other business activity on a promise and a handshake. Many times this works, but the parties should always proceed cautiously so all parties are clear on their expectations and obligations. In a situation of joint real estate ownership, issues like who pays ongoing costs, collects rental revenue and other matters need to be in writing. You may be able to come to a written agreement on these terms in a way that is sufficient for both of you to feel comfortable. Other options could include buying out your sister’s interest in the property, or allowing her to hold a mortgage for their share and paying them monthly. It is important you show a willingness to work with your sister, because once she hires an attorney to represent her, the costs to resolve this now-minor dispute could become a very expensive endeavor.
Eric P. Feichthaler has lived in Cape Coral for 28 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through his chairmanship of the Harney Point Kiwanis Club KidsFest, which provides a free day of fun and learning to thousands of Cape Coral families, and funds numerous scholarships. He has been married to his wife, Mary, for 14 years, and they have four children together. Recently, he earned his board certification in Real Estate Law from the Florida Bar. He is also a Supreme Court Certified Circuit Civil Mediator.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.