Legal Question in Real Estate Law in Illinois

There are a number of factors you need to consider that are not included in the information you provided. What you paid for the home is irrelevant. What is important is what it is worth today.

You should factor in closing costs. Look at it as if you were selling the home, rather than one of you buying the other out. What would be the total proceeds you would get at this time if the property were sold (after commission, closing costs, property tax credits, etc.)? That is the amount that you should now be apportioning in a buy out scenario.

In a buy out, the remaining owner will eventually have to incur closing costs when someday the property is sold. So, it is appropriate that they be factored in at this time. The person being bought out needs to understand that the alternative to being bought out is the property being sold and the proceeds divided.

Once it is determined how much would be available, many other factors come into play. Was there any agreement that you should honor regarding this circumstance arising? If not, if there was a down payment made, whose funds were used? Who made the mortgage payments? Even if one or the other of you made the payments, were other household expenses (groceries, utilities) paid by the other to balance things out? Was it ever intended that the division would be other than half regardless who paid more? Did either of you advance costs like property taxes over and above the other?

If a court were addressing this, it may not come out fairly and a lot of cost would go into it. If you can use the above as a guideline and come to an agreement, be it off a little one way or another, the two of you will come out ahead.

Once an agreement is reached, have an attorney document the agreement and prepare a deed. Your title insurance should be reviewed as well. Considering a will would also be advised.

What do you mean when you say "he needs to buy me out"? Are you unable to contribute to the mortgage, taxes, insurance, utilities, etc.? Is there some other rift in the relationship? At the moment, if you have no written agreement with him, you have an oral general partnership of sorts, or oral joint venture. Whether it is 50/50 or some other ratio will depend in part on how you two contributed to buying the property and how you two have supported the property together since then. If he can support the property on his own, he would most likely need to refinance it in his name only if the current lender won't allow him to take over on his own, and whether there is any equity to be divvied up is unknown. If there is no equity left and he can't get a loan to completely take out and pay of the existing loan, you may be in a position of having to fund a payoff deficiency in proportion to your "oral" ratio. Or you two may need to sell the property. If you and he are amicable you need to talk to an attorney together at least initially to explore these and perhaps other options. If this is not amicable you need to work with an attorney yourself for your own protection. Mr. Repay has provided many of the particulars of what would probably have to be worked out.