Legal Question in Real Estate Law in Minnesota
Need help dividing co-owned property
Last year I bought a house with a freind and the relationship didn't work out. This person has moved out. I would like them to sign a quit-claim deed but they want,I feel, an unreasonable amount of money.
There has been some remodeling done to the house of which I did 85% of and I have the receipts to prove. We have had the house appraised and this person is asking for over half of the appraisal difference. (last years and the new one)
Can they make me sell the house if I don't agree to pay them the amount specified? Do they have any right to collect the money they paid on the loan? We split the payments 50/50 for 9 months, now I'm paying alone.
Thanks in advance
1 Answer from Attorneys
Re: Need help dividing co-owned property
My response to this question is for general information purposes only and does not create an attorney-client relationship. You are advised that no answer such as this should be taken as a substitute for a consultation with an attorney of your choice, and many additional factors not covered in the question as stated could change the outcome.
That said, let me comment. You don't say so, but I assume that you and your partner were of opposite sexes and were cohabiting. There is a growing and fairly complicated body of law in Minnesota on this subject.
I am also assuming, although you don't clearly state it, that your friend's name is on the title to the house. She is one of the named owners on the deed.
Your friend has a right to bring what is called a partition action against you. This gives the court the right to sell the property and divide the proceeds as your interests appear. If all things were equal, that would mean that the proceeds would be divided equally.
You indicate, however, that your contributions were not equal. You have paid for remodeling, and you are now making more than half of the mortgage payments.
I would expect in a partition action to see the court trying to divide the equity in the house in accordance with the proportions of your respective contributions. Contributions would include down payment, mortgage payment, and improvements. The Minnesota Court of Appeals just approved a decision by a court to divide in proportion to direct contributions in the case of Ellis v. Wenz, an unreported decision dated November 23, 1999.
A settlement based upon what your friend would get if she did a partition action would be reasonable.
If you can't reach an agreement with him or her, you should get to a lawyer as soon as possible.