Legal Question in Real Estate Law in Ohio
Buying property from a divorced couple
I am buying a home from my brother and his exwife. He has not bought her out of the house yet. We all 3 signed a letter of intent for me to puchase the house for the amount it appraised for at the time of the divorce. I did some work on it prior to the appraisal for the loan. It appraised $10,000 higher than at the time of the divorce. The exwife is now demanding a part of the $10,000 profit my brother will make. Will the letter of intent bind her to the lower amount or can she get half of the $10,000?
1 Answer from Attorneys
Re: Buying property from a divorced couple
If the letter of intent was a binding letter of intent with consideration, then you could have a contract for the sale at the appraised value. The increase in value would be to your benefit. Neither your brother or his ex-wife receive the increase in value. If you were going to pay more for the property, then your brother and his ex-wife would share the proceeds equally, barring any property settlement in the divorce decree. You may have a claim for the value of your improvements. More facts are needed to be totally sure.