Legal Question in Real Estate Law in New York
renting and owning
My husband and I are living in a house with my Mother.
We are owners of the upstairs and she is owner of the
first floor and finished basement.
We are paying a mortgage for the dormer we added to
the upstairs and we are also paying my mother rent.
We were paying her $700 a month, then she lowered it
to $500 and now she is raising it to $600.
My question is: Is this amount fair?
All three of us are on the deed and are all co-owners.
My husband and I are 30% owners and mom is 70%.
Thank you very much
2 Answers from Attorneys
Re: renting and owning
AS 30% OWNERS, YOU ARE TECHNICALLY RESPONSIBLE FOR 30% OF ALL COSTS (TAXES, INSURANCE, ETC.) ATTRIBUTABLE TO THE ENTIRE HOUSE. THERE ARE MANY UNANSWERED QUESTIONS TO PROVIDE A PROPER ANSWER. IS THERE ANY WRITTEN AGREEMENT ON ALLOCATION OF COSTS? DID YOU BUY YOUR SHARE OF THE HOUSE OR WAS IT A GIFT FROM YOUR MOM? IS THERE A MORTGAGE ON THE ORIGINAL PURCHASE? IF SO, WHO IS PAYING THE MORTGAGE? THE DORMER MAY HAVE ENHANCED THE VALUE OF THE ENTIRE HOUSE, SO THERE MAY BE SOME OFFSETTING BENEFIT TO HER. ARE YOU ASSISTING YOUR MOM MEET HER LIVING EXPENSES BY PAYING THE RENT? IS ANY OF THIS IN WRITING? IF SO, CAN I SEE A COPY TO UNDERSTAND WHAT THE RENT ACTUALLY COVERS? THERE MAY BE MORE QUESTIONS BEFORE A COMPLETE ANSWER CAN BE PROVIDED.
Re: renting and owning
If you own 30% of the property, then you are probably paying rent to your co-owner by some agreement. What are the terms of that agreement? Is there anything in writing? If there is no agreement, then you may want to seek an accounting to determine if income and expenses are properly apportioned. Feel free to call me at 212-367-9167 to discuss this further. I do not charge a fee for the initial consultation.
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