Legal Question in Real Estate Law in Georgia

Sale of house with 2 owners

My brother and I own a house together, he lives in the house and pays the mortgage on the house. The ownership of the house is complete 50/50. We are trying to figure out the most fair way for him to buy my portion of the house. I have $0 invested in the property. My brother has, however, taken equity out of the house to remodel the home and also pay off a car loan. The house was our fathers and my brother and his family moved into the home approx. 2 years ago and took over the mortgage pmt. What would be the most fair way to figure the amount that he should pay to buy my half of the house?


Asked on 2/18/08, 10:18 am

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Sale of house with 2 owners

That is more of a math question than a legal question. One way is to figure out the fair market value and subtract the initial mortgage balance. That is the equity you divide. From his half, he pays the portion of any loans for his personal things (ie, car). You may choose to credit him back for half the cost of any renovations that increased the value of the house or were necessary repairs. He paid the mortgage, but he also got the value of living in the house so that may or may not be a wash. Whe you sell, you will want to make sure he refinances if you are on the loans. Otherwise, you may remain liable even if you do not own the property.

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Answered on 2/18/08, 11:33 am


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