Legal Question in Real Estate Law in Maryland

Joint Tenant In Common Buy Out Options

How does it work when two people who are not married buy home, and then one person wants to move? I am unclear of the options available. Selling the property is the last resort. Do we get the house appraised, and then whoever is keeping the house, gets it refinanced for the appraised amount, and then splits any increase in value with the other party? Are there other alternatives to this?


Asked on 9/10/99, 6:58 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Joint Tenant In Common Buy Out Options

I recommend you ask a real estate broker familiar with your area to come in and give you a market analysis--as he/she would do in order to obtain a listing. If the two of you feel that the value is fair, then whoever wants to keep the house applies for a mortgage to obtain the funds needed to buy the other out. The refinancing will serve to pay off the joint existing mortgage, and the additional amount borrowed will be used to buy out the selling "partner". Another option would be to take out a second mortgage or home equity line for the amount of the agreed-upon purchase price of the selling partner's interest. The interest rate on this will probably be higher than if you refinance.

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Answered on 9/14/99, 4:09 pm


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