Legal Question in Real Estate Law in Florida
Bob, Kelly and Jane are brother and sisters. They went in together and purchased a home at $60k each in cash. Bob handled the transaction and has deed in his name. Bob prepared a "contractual agreement" stating that all three are co-owners of the property. 6 months later, Bob took out a mortgage on the property without advising the other two co-owners. Now four years later, the other owners find out about the mortgage b/c they want to sell the property. Bob refuses to do anything - he feels he didn't do anything wrong.
Do you think the mortgage company would do anything if Kelly and Jane contacted them and advised they were also owners of the property?
Kelly and Jane have asked him to take a mortgage on his other "unencumbered" properties, and pay off the loan on this property, but he refuses.
1 Answer from Attorneys
The mortgage company wouldn't do anything, but Bob could have legal action against him for Breach of Fiduciary Duty. You have a partnership and/or a contractual agreement. Without looking at it, Bob appears to have taken advantage of it against the interests of other co-owners. The money he borrowed should have been shared at best.
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