Legal Question in Real Estate Law in Washington

Re: Purchasing vacation property with brother.

These are always delicate situations because you don't want to ruin a personal relationship with business problems. My usual recommendation in this situation is to purchase the home as a partnership or limited liability company. You and your brother would have an agreement as to what happens upon death, divorce, or just a desire to get out of the property. For ownership you would want to have the house considered solely the separate property of you and your brother and have your spouses agree to this. That way, only two people are involved in decision making instead of four. It also takes the property out of play in divorce proceedings.

Generally you have to limit the ability to bring in other people, so for instance your brother would not be able to sell his interest without your consent. Thus if your brother wants out that means either you sell the property or you buy him out. The agreement would have the terms outlined. Generally the buy out terms are easy to allow the one who wants to keep the property a decent chance of doing so.

Sometimes the owners want to have the spouses involved and that can be done if necessary.

I think you would be looking at about $2,500 for preparation costs on a well-done, durable arrangement.