Joint property ownership
Discussion
Tried this more genrally on the property forum and it was suggsted I tried here.
How would you set up a legal agreement if 3 families bought a house together to protect the rights of those in the house?
We are thinking of jointly moving in with the outlaws and their single son in one very large house. We would be putting in about 50% of the equity, they would put in about 30-35% and the brother 15-20%. My main concern was what would happen if he took up with some new woman with kids (he has one who periodically appears and milks him dry), moved them in and then they spilt up and wanted to stay and him to leave or wanted her share of any increase in the value while they had been together?
When the outlaws eventually pass on, could we stay living in the house?
How would you set up a legal agreement if 3 families bought a house together to protect the rights of those in the house?
We are thinking of jointly moving in with the outlaws and their single son in one very large house. We would be putting in about 50% of the equity, they would put in about 30-35% and the brother 15-20%. My main concern was what would happen if he took up with some new woman with kids (he has one who periodically appears and milks him dry), moved them in and then they spilt up and wanted to stay and him to leave or wanted her share of any increase in the value while they had been together?
When the outlaws eventually pass on, could we stay living in the house?
You would choose to hold your shares of the property as "tenants in common" so each of you would own one a slice of the whole. If it's a percentage then it's easy, at purchase you'd own 50% and so on any sale you'd own 50% including the effect of any profit or loss.
Your B-i-L would own his share but yes, it would be liable to any claim that a partner of his made. In theory this doesn't affect you but you would have to think about how you would deal with him needing to sell his share - you need to think about this anyway to deal with any one of you needing to sell.
You might also like to think about how you protect yourselves from the effects of your P-i-L needing care and the costs of that which may be levied against the property.
You really do need good advice on this one. It's do-able but you must be entirely realistic about the things that could go wrong and try to make provisions with how you would deal with those situations.
Your B-i-L would own his share but yes, it would be liable to any claim that a partner of his made. In theory this doesn't affect you but you would have to think about how you would deal with him needing to sell his share - you need to think about this anyway to deal with any one of you needing to sell.
You might also like to think about how you protect yourselves from the effects of your P-i-L needing care and the costs of that which may be levied against the property.
You really do need good advice on this one. It's do-able but you must be entirely realistic about the things that could go wrong and try to make provisions with how you would deal with those situations.
Sorry, didn't deal with your last point.
How you deal with P-i-L death depends on how you've set things up and what their wills say.
The straightforward solution is that their slice is left equally to their children so that your wife and her brother would own their own original shares and half of P-i-L. So using round figures if your P-i-l owned 30% originally your wife would now own her original 50% (I'm ignoring you to make it easier!) and half of her parents 30% so now she would own 65% with her brother owning the remainder.
Again you would have to think about how you deal with one party wanting to sell etc.
How you deal with P-i-L death depends on how you've set things up and what their wills say.
The straightforward solution is that their slice is left equally to their children so that your wife and her brother would own their own original shares and half of P-i-L. So using round figures if your P-i-l owned 30% originally your wife would now own her original 50% (I'm ignoring you to make it easier!) and half of her parents 30% so now she would own 65% with her brother owning the remainder.
Again you would have to think about how you deal with one party wanting to sell etc.
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