What Happens When We Can't Agree regarding Property We Own Together--A Tale of Two Sisters
Great article by Elliott S. Topkins, Massachusetts Real Estate and Title Atty. Unmarried buyers who purchase homes together should read and consider the advise offered below.
Two sisters bought a vacation home on one of the offshore Massachusetts islands a little more than five years ago. They had a legacy from their grandmother's estate, and they decided to purchase a home which they could enjoy, either together or by themselves. There was no mortgage involved, and the purchase transaction went off smoothly, as they acquired the property as tenants-in-common.
Fast forward to 2010, and situations have changed, as they almost always do. Sister one has lost her job, and she does not have much extra money. Sister two has a high-level executive position, and she is thriving both in the workplace, and at home, where she has just given birth to her first child.
Sister one now wants to use the vacation home for the extra income it can provide, even in these tough economic times. Sister two wants to spend time in the vacation home enjoying her family and the fruits of her hard work. The two sisters have reached an uncomfortable impasse regarding the property.
Sister two has come to me seeking advice as to what she can do. Needless to say, there is NO tenancy-in-common agreement between the sisters. No one mentioned it at the time, and they probably would have discarded the idea if someone had.
I have advised sister two that she has only one remedy in this situation, unless calmer heads can prevail. She can file a Petition for Partition with the local Land Court, have the vacation home sold by a court appointed Commissioner and split the proceeds with her sister. The good news is that they have no mortgage; the bad news is that this may be one of the low points in value on this vacation Mecca. They will almost necessarily lose money if they sell at this point.
How much easier this all could have been if they had the foresight to have a tenancy-in-common agreement. How miserable it is for both of them now. Please, please, please get non-married people to think about these issues when they purchase property together. This family may never be the same again.
Comments(1)