Legal Question in Real Estate Law in Massachusetts

Re: Parting of Ways with common real estate

As a co-owner of the home, your sister is entitled to her percentage of the total value of the home less any outstanding mortgages which are in both of your names. Your options would be to either sell the house to a 3rd party and split any profit or you would need to purchase her share of the home. The amount of the "buy out" is usally market value less mortgages multiplied by her ownership percent. One other thing to keep in mind is that most mortgages contain a due on sale clause which is triggered when the property is sold or transferred. You should also check with the lender to see if they would allow your sister to be removed from the mortgage (if she is buying another property chances are the new lender will not lend to her if she has a pre-existing mortgage in her name). In most cases when one owner is buying out the other owner, the remaining person usually seeks financing to pay-off the original mortgage and pay the other owner their share.

Re: Parting of Ways with common real estate

When two or more people own real estate as tenants-in-common or joint tenants, any one owner can file an action in Probate Court asking the Court to divide the property between them according to their interests. The Court will either divide the property physically, if that is feasible, or order it sold and the procceds divided. The exception to this rule is a case in which there is a prior agreement between the parties as to what to do with the real estate in case one of them no longer wishes to own it. This emphasizes the importance of having such an agreement in writing before making such a purchase.