Legal Question in Real Estate Law in Illinois

Conveying a minority interest in a condo?

I am buying a condo in Chicago, and

rather than rent to my roommate I

am planning on selling him 30%

interest in the unit. He is going to

put down 30% of the 20% down

payment as well as pay 30% of the

mortgage.

What is my best way of doing this

and safeguarding my interests? I'm

assuming a separate contract

between him and I. What should I do

to make it so if he stops paying after

a year he is not entitled to 30% of

the value? I guess use his

downpayment as a security, and

thats all he can get back if he stops

paying before time to sell.

Then that begs the question, who

determines when his end is fulfilled?

Overall, what is the best way of doing

this?


Asked on 6/05/08, 6:13 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Conveying a minority interest in a condo?

There are a lot of variables here. You need to sit down with an attorney to draft a partnership agreement that fits your particular situation. You also need to make sure your lender is ok with this arrangement.

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Answered on 6/06/08, 9:42 am


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