Legal Question in Wills and Trusts in New York
Best form of tennancy by unmarried spouses?
My girlfriend with whom I plan to get married in approx. one year, is inheriting a portion of her fathers estate along with 3 other siblings. She is to recieve a 1/4 share of her parents home. The home is valued at $450,000 with approx. $150,000 estate liability, leaving $300,000 split 4 ways, or $75,000 each sibling. She wants to keep the home herelf since she grew up there. The other siblings just want it sold so they can get their share. Her credit is not good enough for her to get a mortgage and so she wants me to put the house entirely in my name, as well as the mortgage in my name only, with a provision that I cannot sell it to anyone but her once her credit gets better. (It gets better)
She wants me to finance the closing costs (approx. $26,000) and get a loan for a total 450,000 plus $26,000, or ($476,000)this way she can keep her $75,000 share. She also wants Joint tennancy with rights of survivorship in the event of my death. What do you think
3 Answers from Attorneys
Re: Best form of tennancy by unmarried spouses?
Love is not the same as good credit. If you proceed you will have taken on an obligation in excess of the collateral. No bank would do that and so why should you?
Re: Best form of tennancy by unmarried spouses?
WHILE I AGREE WITH NORMAN, CONCEPTUALLY, I HAVE A FEW COMMENTS AND SUGGESTIONS, ALL OF WHICH PRESUME THE OTHER SIBLINGS WILL AGREE TO THE PRICE/VALUE. I DO NOT UNDERSTAND WHY YOUR GIRLFRIEND IS NOT WILLING TO CONTRIBUTE TO THE PURCHASE PRICE, BUT STILL WANTS HER NAME ON THE DEED OR AS THE PERSON WHO GETS THE PROPERTY IF YOU PASS AWAY. JOINT TENANCY WITH RIGHT OF SURVIVORSHIP IS USUALLY ACCOMPLISHED IN THE DEED. IF THIS WERE TO TAKE PLACE, SHE COULD INHERIT THE HOUSE WITHOUT ANY FINANCIAL CONTRIBUTION. DO YOU LOVE HER THAT MUCH, THAT YOU WOULD RISK PROVIDING HER THE ENIRE OWNERSHIP WITH NO FINANCIAL CONTRIBUTION FROM HER AT ALL. WHAT HAPPENS IF THE RELATIONSHIP/MARRAIGE DOES NOT WORK OUT? I SUGGEST YOU MUTUALLY RETAIN AN ATTORNEY FAMILIAR WITH THESE MATTERS (BUYING PROPERTY WITH SOMEONE NOT YOUR SPOUSE) AND WORK OUT SOME WRITTEN AGREEMENT TO COVER ALL OF THESE POSSIBILITIES. I HAVE DONE THIS MANY TIMES, AND THE AGREEMENT SHOULD COVER ALL ASPECTS FROM THE ACQUISITION, TO WHO WILL BE RESPONSIBLE FOR WHAT COSTS AND EXPENSES WHILE YOU RESIDE THERE, TO WHAT HAPPENS IF THE RELATIONSHIP ENDS, TO POSSIBLE MARRIAGE AND INHERITANCE SHOULD YOU PREDECEASE HER. WITHOUT HAVING ANYTHING IN WRITING, SPELLING OUT, IN DETAIL, WHAT ARE EACH OF YOUR RIGHTS AND OBLIGATIONS FROM DAY ONE (BUYING IT), AND WHAT HAPPENS IF THERE IS NO MARRIAGE OR THE MARRIAGE ENDS IN DIVORCE PUTS YOU IN A DIFFICLT SPOT AND YOU COULD LOSE THE HOUSE AND STILL BE OBLIGATED TO PAY THE MORTGAGE. PLUS, I HAVE NOT EVEN TOUCHED ON WHAT HAPPENS IF THE OTHER SIBLINGS DO NOT ACCEPT THE VALUE IN THE ESTATE. ALSO, WHY ARE CLOSING COSTS SO HIGH? I HANDLE REAL ESTATE REGULALRLY, AND HAVE RARELY HAD COSTS THAT HIGH, ON THE PART OF THE BUYER. WHAT ELSE IS INVOLVED? THIS IS A RESPONSE TO AN INTERNET QUESTION AND THE REPLY IS NOT INTENDED TO BE LEGAL ADVICE OR TO CREATE AN ATTORNEY-CLIENT RELATIONSHIP. OMITTED FACTS MAY RESULT IN A DIFFERENT RESPONSE.
Re: Best form of tennancy by unmarried spouses?
Lets see, she want you to buy the house, give her $75,000 and make the house joint with her? Sounds like you are buying the house, not going into partnership with her. Not exactly a fair way for a partner to act.
There are ways to structure it so it is more fair, one is for you to buy the house and give her the right to buy it back from you over time by paying the mortage & expences. She would not be on the deed until sometime in the future however. Or she could have the right of first refusal if you decide to sell, meaning if she can match the price you are being offered she can buy it. Or a combination of these.
You both need attorneys to structure this so both are protected. Get in touch with one quick.
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