Legal Question in Real Estate Law in Wisconsin

Re: Sister's Decision

Your sister should not buy a one-third interest. As a minority owner, she would need an extensive agreement drafted, and that would only protect her against her boyfriend, not against foreclosure, and other third party claims. The complexities also involve determining if there is a mortgage, whether there are outstanding liens or judgments, valuation, and a host of others. While there may be a method to deal with all these variables, the cost to set something up that would adequately protect her ( and that really is determined by what she feels is adequate ) would be enormous. For example, she could acquire the whole property and finance it in her own name. She would then have no risk of foreclosure from her boyfriend defaulting. However, if they break up and she no longer wants the property, she'd have the risk of loss upon disposition of the property. This is not a good situation.